LEAVING NO ONE BEHIND

Israeli Business and Inclusive Growth

David Grayson

Tami Leffler

Momo Mahadav

Elisha Silberklang CONTENTS

06 EXECUTIVE SUMMARY

12 PREFACE | David Grayson

20 TIMELINE OF BUSINESS & INCLUSIVE GROWTH IN

22-45 PART ONE 22-27 Chapter 1 | Inclusive Growth 28-35 Chapter 2 | Social and Economic Exclusion in Israel Today 36-39 Chapter 3 | The Israeli Dynamic and how this Drives a Focus on Inclusive Growth 40-45 Chapter 4 | Defining the Contribution of Businesses in Israel to Inclusive Growth

46-119 PART TWO | FOUR PILLARS OF ISRAELI BUSINESSES CONTRIBUTING TO INCLUSIVE GROWTH 46-73 Chapter 5 | Contributing to Inclusive Growth in the Workplace 47-54 Tackling In-Work Poverty: 48-49 Assuta Medical Centres 49-52 Strauss Group 52-53 Central Bottling Company 54 Reskilling for Future Jobs 54 55-70 Inclusion in Workplace: 55-57 People with Disabilities 55-56 Harrel Insurance 56-57 Aroma Espresso 58-65 Arab Israelis 58 Co-Impact Initiative 58-60 Tnuva 60-61 -Nestle 61-63 SodaStream 63-64 Dan Hotels 65-68 Ultra-Orthodox (Haredi) Jews 65-66 BDO Israel 66-68 Western Digital 68-69 Working Care Givers 68-69

02 - Leaving No One Behind 69-70 Older Workers 69-70 Gevasol 74-82 Chapter 6 | Nurturing Suppliers 75-77 Sano 77 Tavas/Electra FM Group 78-79 Bank Leumi 79-80 WeSource 80-81 Israel Electric Company 84-97 Chapter 7 | Marketplace: Products and Services 84-90 Products & Services helping customers live better lives 84-85 Clalit 85-87 Israel / Shopo 87-89 IBI Investment House / FundIt 89-90 Strauss Group & The Kitchen 90-93 Helping vulnerable customers be more included in rapidly-changing marketplace 90-91 Teva Pharmaceuticals 91-93 93-96 Sustainable Innovation: Developing goods and services which are more sustainable 93-94 94-96 Impact First Investments 98-48 Chapter 8 | Business and Society 99-103 Responding to the Trust Crisis 99-102 Strauss Group 102-103 Bank Hapoalim 104-108 Promoting Inclusive Growth through Corporate Community Investment 104-106 Intel Israel 106-108 ICL 108-112 Improving Education 109-110 5x2 Collective Impact Initiative from High Tech Sector 111-112 Tovanot B'Hinuch (Insights in Education) 112-116 Helping Youth at Risk 112-115 Bank Leumi and Aharai 115-116 SAP Israel - Social hack-a-thons and help for people with disabilities 117 Fast-growing technology start-ups getting involved 117 Tmura – The Israeli Public Service Venture Fund

Leaving No One Behind - 03 CONTENTS

120-127 PART THREE | GOING TO SCALE 120-124 Chapter 9 | How can more businesses contribute to Inclusive Growth in Israel and Internationally 126-127 Chapter 10 | Conclusion

128 Post Script | HOW MAALA WILL TAKE THIS AGENDA FORWARD: TAMI LEFFLER, MOMO MAHADAV, ELISHA SILBERKLANG

129-135 END-MATTER Acknowledgements About the authors Further resources

136-141 NOTES

142-145 INDEX

04 - Leaving No One Behind Leaving No One Behind - 05 EXECUTIVE SUMMARY

Inclusive Growth is defined These twin “global-local” shocks prompted a critical mass of Israeli headquartered businesses and international by the OECD as economic companies with significant presence in Israel, to become growth that is distributed fairly more strategic in their approach to encouraging Inclusive across society and creates Growth. opportunities for all. Simply These approaches were shaped by the very particular combination of features of Israeli society. Many of these put, it is growth that benefits were described in the 2009 best-seller “Start-Up Nation.” everyone. They include the powerful sense of “Leave no-one behind’ derived from the egalitarian and communitarian spirit of It is increasingly recognized internationally that alongside the Israeli society, which is both exemplified in and reinforced systemic risks to the financial system and to society, from by, the communal experience that most Israelis have climate change, is the parallel systemic risk from hyper global through their compulsory national service in the Israeli inequalities. These are two sides of the same coin: both Defence Force: IDF. Service in the IDF gives Israelis a sense demand transformative change in business and in society in of responsibility and earned authority at a very young age, the coming decade. If economic growth is only enjoyed by the with a heavy emphasis on rapid improvisation and problem- few, it will not be sustained by the many. Equally, prosperity solving. Other features include “one degree of separation” has to be achieved within the constraints of One Planet. connectivity – again reinforced by IDF service – and a powerful sense of irrational self-confidence and “can-do” Already, international business leaders are recognizing these determination, often summed up as “chutzpah.” twin challenges. In April 2019 for example, the Financial Times ran a full page article headed “Why American CEOs Whilst Israel has become a global high-tech hub with are worried about the future of capitalism.” The Financial 360 multinational R&D centres – the highest per capita Times has subsequently run a series of features, OpEds and concentration in the world – and enjoys an enviable editorials about re-setting capitalism. In August 2019, 180 reputation for its entrepreneurial culture and support top corporate US CEOs issued a statement re-defining the eco-system, Israel also has the highest poverty rate purpose of business. A year in the making, this statement amongst the advanced economies, according to the World was drafted and refined by the CEOs themselves. There Economic Forum’s Inclusive Growth Report 2018. Amongst have also been a number of business-led initiatives to the dimensions of social and economic exclusion to be “renew” or to “re-imagine Capitalism” and to promote social tackled in Israel are in-work poverty; improving labour and economic inclusion. Businesses and business-led market participation rates amongst both the Arab Israelis Corporate Responsibility Coalitions in many parts of the and the Ultra-Orthodox Jewish communities (Haredim), world have joined in these efforts. This includes Maala: Israel which are both growing as a percentage of the total Israeli Business for Social Responsibility. population; increasing job opportunities for Israelis with disabilities; improving social mobility for marginalized groups; In Israel, as well as the impetus of the Global Financial Crisis youth at risk; digital exclusion; elder-poverty; and the of 2007-08, there was a very specific “wake-up” call in the potential impacts of Artificial Intelligence and automation shape of widespread social protests in the summer of 2011, on employment and social participation. Significantly, against the cost of living and growing inequalities. these largely correspond to the priority challenges recently

06 - Leaving No One Behind identified by the Joint Distribution Committee (JDC) for service; supporting employee-led initiatives to develop its future work in Israel, in its Strategic Review which was new products and services to help people with disabilities; concluded earlier in 2019. assisting community regeneration; and encouraging successful new businesses to share their success with the Leading Israeli businesses are responding to these community at IPO (Initial Public Offering). challenges with efforts in the work-place, the market-place, in their supply-chains and through being active corporate Many of the most innovative and impactful examples of citizens in the community. businesses contributing to more Inclusive Growth in Israel, involve close collaboration with Israeli NGOs such as Aharai, In the work-place, companies are tackling in-work poverty, Al Fanar, Caregivers Israel, Co-Impact, Joint Distribution increasing minimum pay, extending benefits to contract Committee (JDC or Joint), Israeli Forum for Employment workers, helping employees to learn how to manage their Diversity, Pa’amonim, Tsofen and WeSource. Such NGO finances better and offering extended employee benefits. intermediaries combine Civil Society purpose and values Businesses are also running customized, pre-recruitment and advocacy, with management processes and discipline. training programmes to enable individuals from marginalized This makes them trusted and attractive partners to communities, including Arab Israelis and Ultra-Orthodox businesses in Israel. Building the capacity of these NGO Jews, to develop sufficient skills to be employed; and then service providers to businesses, could facilitate a bigger giving personalized, on-the-job training, mentoring and peer business contribution to Inclusive Growth in the short-term. support to help these employees to stay in work and to advance from entry-level posts. Similarly, successive governments have also often been a catalyst for more business action – not least to be more Companies are encouraging and supporting their suppliers proactive in the integration of Arab Israelis and Ultra- to raise their standards and thereby become more resilient Orthodox Jews into the workforce. and inclusive businesses too. Some companies are also splitting Invitations to Tender, to make it easier for small and medium size enterprises (SMEs) to bid for contracts.

In the market-place, companies are developing products and services which are more inclusive and being more proactive in reaching out to customers from marginalized communities.

Businesses are also deploying a combination of People, Profits, and other resources to tackle social and economic exclusion through wider and more strategic engagement in the community. This includes providing management $ expertise and mentoring to schools, particularly in more deprived neighbourhoods; supporting efforts to improve school students’ performance in mathematics and science; helping youth at risk to be better prepared for their military

Leaving No One Behind - 07 EXECUTIVE SUMMARY

These activities can provide insights for other businesses – large or small – can adopt and adapt to meet their both in Israel and internationally. Maala – Israel Business for own business needs and strategic priorities. Businesses Social Responsibility - intends to build on this publication, which are currently implementing “Foundation Stage” and campaign further on the role that businesses can play activities should consider how they can graduate to the in contributing to Inclusive Growth – both within Israel and “Development Stage” and potentially become a champion. internationally. There is an urgent need for many more Businesses which champion Inclusive Growth will have a businesses to join the “early adopters” whose examples are strategic approach to all the four pillars of Business and described in “Leaving No One Behind.” Inclusive Growth. They will also use their own experience to encourage other businesses to become involved. This may The Leaving No-One Behind Checklist for Business Action be through their sectoral trade associations, engaging their offers a range of practical measures that any business suppliers and their business customers.

PILLAR FOUNDATION DEVELOPMENT CHAMPION

Establish base-line: composition Extend number of target groups Establish new stretch targets of workforce: entry-level, junior/ currently under-represented in on percentages of under- middle/senior management in workplace that business is trying represented groups in workforce terms of gender, people with to recruit at both entry-level and disabilities, ethnicity, etc management levels

Set target percentages for total Revise and increase target workforce & for management in numbers for employing Ultra- terms of gender, ethnicity, people Orthodox Jews, Arab Israelis and

WORKPLACE with disabilities, etc. people with disabilities

Identify & implement necessary Monitor retention and workplace workplace modifications in advancement rates for target order to accommodate under- groups. represented minority groups such as Ultra-Orthodox women, Appoint workplace champions Arab Israelis for employing Ultra-Orthodox, Arab Israelis and people with disabilities, and working carers

Train first line-managers in Establish employee peer group managing cross-cultures and networks for people with people with disabilities disabilities, Ultra-Orthodox, Arab Israelis

08 - Leaving No One Behind PILLAR FOUNDATION DEVELOPMENT CHAMPION

Work with partners - to identify & Join external learning networks Share company experience in provide pre-recruitment training to share emerging good practice external talks and interviews by to target under-represented and learning company chair/CEO/SMT (Senior groups Management Team)

Identify and provide support for Pay enhanced Minimum Wage Develop a compressive plan to employees living below poverty- advance personal and economic line well-being, focused on low income employees WORKPLACE

Build a career path for entry level Build a compressive programme employees for reskilling and career path for entry and mid-level employees

Set targets from internal recruitment for higher skilled jobs for entry level employees

Train and provide tools for Train content experts on pension Advise on pension planning to all pension planning planning within the organization employees

Fund retirement planning courses Continue entitlement of retired Offer courses and training to employees to the organization’s develop skills and capabilities of well-being benefits retired employees

Establish baseline of working Consult with working carers on Offer paid Carers’ leave carers in the organization development of programme for practical support for working carers

Monitor & regularly report on progress

Leaving No One Behind - 09 EXECUTIVE SUMMARY

PILLAR FOUNDATION DEVELOPMENT CHAMPION

Review payment terms and Build on-line Supplier Interchange Break up larger tenders into commit to paying all suppliers where suppliers can also share smaller tenders so that SMEs can on-time good practice to raise standards realistically bid for them and support Inclusive Growth procurement

Verify that manpower/service Recommend Maala Basic Index Incentivise suppliers to join the contractors comply with labour to SME suppliers Maala Basic Index

SUPPLIERS laws

Ensure procurement policy Check procurement processes Set aside percentage of all also includes reference to the inherently address social and contracts by value for suppliers advancement of social and environment issues from minority groups such as environmental issues Ultra-Orthodox, Arab Israelis, people with disabilities. Set targets for suppliers with social and environmental edge.

Periodically survey suppliers’ Run regular supplier Run comprehensive supplier views of working with the conferences to share good capacity building programmes company practice and build capacity

Identify vulnerable customers Review product/service Add increasing inclusion as a core and ways to reduce their portfolio and identify any which “stage-gate” criteria for company’s vulnerability inadvertently increase social & innovation process and business economic exclusion and look to development modify or remove from portfolio

Encourage employees to become “social intrapreneurs” who champion creation of products and services which enhance Inclusive Growth

Link executive compensation to inclusive growth criteria relevant

GOODS & SERVICES for the company

10 - Leaving No One Behind PILLAR FOUNDATION DEVELOPMENT CHAMPION

Audit existing community Identify and establish external Identify and establish programmes involvement and how far this NGO partners for company-led that are linked to the company’s already enhances Inclusive projects core impact on inclusive growth Growth

Set targets and measure percentage of community involvement programmes impacting inclusive growth COMMUNITY Invite employees and other Establish a process to evaluate Train staff likely to be involved in stakeholders to identify fresh employee ideas for community partnerships with NGOs, public ways that the company could involvement to encourage more sector and other businesses, in promote Inclusive Growth Inclusive Growth Partnership Skills

If “leaving no one behind” is to become a reality rather than Increasing social mobility and improving the pipeline of an aspiration, many more businesses will need to go All In human capital in Israel is essential for the continued success for sustainability and inclusion; and to take A.C.T.I.O.N (Assess of Israel as a Start-Up Nation and global high-tech hub; material needs and opportunities; Commit to Inclusive and fulfils obligations to help those demographics of Israeli Growth at board and senior management; Tell internal and society that have not yet experienced the promise of this external stakeholders why this is in the long-term interests of innovation economy. In turn, this will offer further lessons for the business itself as well as of society; Organise around the other countries also grappling with the challenges of a very four pillars identified; and Nurture partnerships with NGOs, uneven spread of globalisation’s benefits. public sector and other businesses to scale-up their own commitments).

Leaving No One Behind - 11 PREFACE David Grayson

The 2011 SOCIAL PROTESTS

It is hard for someone who was not there, to appreciate the Strauss Group and for businesses generally. We think fully the impact of the social protests that gripped Israel in it is worth quoting her words at some length because the Summer 2011. 2011 Social Protests were still very fresh but leaders like Ofra had already started to reflect deeply on what they The protests began as complaints about the soaring meant for business: costs and availability of housing. Very quickly, however, the focus of the anger switched from government to the “It was a wake-up call… one million people marched on the companies first with protests against a 45% hike in the against inequalities… I spent seven hours with the price of a popular brand of cottage cheese. As a staple of protestors, to hear what they had to say… People don’t trust Israeli diets, one name for the demonstrations became the us… For a brand company, reputation is the only thing that “cottage cheese protests”. matters… To regain that trust will be a very long journey… We have to prove we mean good and that we seek good… As Daniel Doron wrote in the Wall Street Journal at the time: We thought we were good, really thought we were a good company… But we are powerful, are we abusing our power, “The cottage-cheese rebellion started after a major are we too big? business publication ran a series of features comparing food prices in Israel and abroad. People realized that while To restore trust, we will have to change, go back to basics. salaries in Israel are about half those in America, prices of I went back to my grandparents’ house: to our founders’ consumer goods and services are about double.”1 story… I realised globalisation means our responsibility has no boundaries: we impact and so do our mistakes… The protests went on for several weeks. At their height, it is We have to talk ‘with’ and not talk ‘to!’ We have to have a estimated that half a million Israelis were on the streets of dialogue: we had missed something! We need a new way Tel Aviv and other cities. of listening. We don’t have all the know-how. …A better society means good business. Good businesses One of the business leaders most in the public eye during are crucial for healthy societies. We have to step up!” this time was Ofra Strauss - chair of Strauss Group - a leading Israeli food business created by her grandparents Far more viscerally than the subsequent “Occupy in the 1930s. Ofra Strauss felt her responsibility to act. At movements” or the more recent Gilets Jaunes in France, the time, she was then also chairing the board of Maala: the Israeli social protests challenged the self-confidence Israel Business for Social Responsibility. and self-belief of many Israeli business leaders. As one business leader told us in June 2019: the 2011 protests Newspaper articles at the time show Ofra Strauss perched on a stool in front of her house in Tel Aviv in animated “…made a huge change. It was like an earthquake. Like a discussion with the protestors. coup, then panic, then silence, doing nothing, in the bunker - and then trying to learn how to work with that. So, the A few months after the social protests, Ofra Strauss spoke customer now has a voice, a chair at the table.”2 at the 2011 annual conference of Business for Social Responsibility (BSR) in the USA. In speeches and interviews The 2011 social protests in Israel reflected what the there, she reflected on the implications of the protests for journalist Anshel Pfeffer, has described in his book “BIBI.”

12 - Leaving No One Behind “Israel had two economies: a healthy, technology-driven Still it is unclear how many business leaders have really economy, trading with the world and bringing in handsome internalized the consequences of 2011. Dan Propper – rewards for its successful entrepreneurs and software engineers chairman of Osem-Nestle – reflects that: on the one hand, and, on the other, a second economy in which “I am not sure how much has really changed. There has most of the middle and working classes foundered.” 3 been some changes, in terms of a tactical regrouping, but there hasn’t been a fundamental shift in the business Or as The Economist newspaper elaborated: thinking in Israel overall, that there is a need for some new kind of social contract to be developed. Too often, it is still “It is easy to be dazzled by Israel’s high-tech firms. In fact, the about understanding the consumer as a consumer, rather country has two separate economies. The dynamic, globalised than as a social creature who needs to have a stake in the start-up nation accounts for only about a tenth of employment, system. We in Osem initiated a move to increase Arab-Israeli whereas nine in ten Israelis work in something more akin to workers to reach their proportion in the total population, a left-behind nation that is inefficient and protected from without compromising on our qualification requirements. I competition. Poverty rates in Israel are among the highest in hope more companies will follow in our steps.”5 the rich world, for two main reasons: the ultra-Orthodox often live on public subsidies to pursue a life of Talmudic studies; and Arab citizens struggle to achieve equality.”4

AN OUTSIDER PERSPECTIVE

These protests foreshadow polarization and issues of inclusion that we are seeing all over the world, from the Gilles Jaunes in France, to the rise of populism in the US, Brazil, Hungry and the Philippines and India to the Brexit movement in my home country. This is why I find Israel so fascinating from a societal perspective - it is an early indicator of where we might go, which makes it important and drive and creativity of the Israeli people. and how the Israeli business community has responded to these shifts provides critical insights and lessons for us all. It is easy for the casual reader to forget that Israel is still a young nation built on successive waves of mass immigration I first visited Israel in 1979 on a Christian pilgrimage, - and an ability so far - to absorb these newcomers - not somewhat bizarrely interspersed with meetings on least the more than one million immigrants from the former Christmas Eve and Christmas Day in the Knesset with Soviet Union, who moved to Israel in the 1990s. It is easy to the different political parties! I have visited on numerous pass over such numbers on the page. Yet pro-rata, to the occasions since, variously as part of a young politicians’ receiving population, the equivalent in the US of the Olim delegation; to evaluate a small business loan fund to help migration to Israel, would have meant the US absorbing 70 young Olim and army veterans; to speak at conferences million immigrants in that decade. and workshops for Maala; and to lecture at a management school. I have been coming for almost two thirds of my life In the past two decades since the mass migration from the and for more than half the life of Israel itself. As an outsider former USSR, Israel has surfed a wave of entrepreneurism - in different senses - it is always presumptuous to think we and technological innovation, which has earned the country know another country, but I have long admired the resilience the sobriquet of “the Start-up Nation.”

Leaving No One Behind - 13 PREFACE David Grayson

START-UP NATION

Ten years ago, this year, Dan Senor and Saul Singer We draw extensively on Start-Up Nation in this publication, published what quickly became an international best- because we believe that the constellation of factors seller: “Start-Up Nation - The Story of Israel's Economic that Dan Senor and Saul Singer described, such as the Miracle.” The book describes how Israel – then with a successive waves of immigration and the culture of population of just over 7 million6 and “only sixty years old, solidarity and initiative-taking improvisation inculcated surrounded by enemies, in a constant state of war since its through compulsory military service are also some of founding, with no natural resources—produces more start- the important factors explaining what is now driving the up companies than large, peaceful, and stable nations business community in Israel, to be proactive in seeking to like Japan, China, India, Korea, Canada, and the United tackle social exclusion and drive Inclusive Growth. Kingdom?" The Economist newspaper notes that Israel now has more high-tech start-ups and a larger venture capital We will later explain how, ten years on from the publication industry per capita than any other country in the world. of Start-Up Nation, Israel is again evolving: the Start- Up Nation is also becoming Social Innovation Nation - Whilst not without its critics – not least for ignoring harnessing and adapting many of the tools and techniques wealth inequalities and for its explanation of why Israeli that have been developed as part of Start-Up Nation Arabs have not generally shared in the Start-Up Nation to help improve social inclusion. Thus, for example, the bonanza – the book has been translated into more than model of Business incubators is being extended to Social 20 languages including German, Japanese, Mandarin and Incubators; as well as frequent hack-a-thons, there Japanese; and reached fifth on the business bestseller are also now hack-a-thons for social causes. As well as list of The New York Times. It also reached The Wall Street Venture Capital, there is also Social Venture Capital and the Journal bestseller list. The book has been extensively High Tech sector in Israel is now including Tech-for-Good. quoted around the world; and has been the inspiration for Governments inter alia in Ireland, Singapore and South Korea to develop new enterprise promotion strategies.

A LONG-TERM BUSINESS COMMITMENT TO INCLUSION

Inclusive growth became front and centre and gained and the elderly became a government priority. JDC together impetus after the social protests of 2011, but the move to with the Government of Israel, worked towards achieving the include marginalized populations started several years employment goals set by the Eckstein Commission for 2020. beforehand. Members of the ultra-orthodox communities With the increased integration of these populations into participated in vocational training programmes in the workforce the need for inclusive growth in companies 2005 (Parnasa Bechavod) and with the creation of the was heightened as there was now an increasing number of employment initiative of the Joint Distribution Committee working poor and a lack of advancement in the work force. (JDC - or the ‘Joint’) and the Government of Israel in 2007 (JDC - Tevet) the issue of workforce integration for Arab Businesses in Israel too were trying to tackle social and Israelis, Ultra-Orthodox, Ethiopians, People with Disabilities economic exclusion long before the 2011 social protests.

14 - Leaving No One Behind Maala: Israel Business for Social Responsibility was at what has changed."7 A number of leading companies established in 1998 by the indomitable social entrepreneur have developed imaginative and innovative approaches Talia Aharoni and quickly brought together a critical mass in recent years to tackling social exclusion. The challenge, of Israeli businesses and international companies with a however, remains real and substantial. To be very : significant presence in Israel, to share good practice and we are certainly not claiming that Israel has solved the encourage others to join in improving the performance of challenges of social and economic exclusion or that businesses and their positive impacts. I saw, at first-hand, business generally in Israel is yet mobilized on inclusive on several occasions throughout the 2000s, how Maala growth. Far from it. Like many other countries, Israel faces was engaging and inspiring business. It was one of the some deep socio-economic, cultural and political divisions Corporate Responsibility coalitions that was continually between those left behind by globalisation, uncomfortable innovating and raising the bar for responsible business – with the pace and extent of change and those who have not least with the establishment in 2006 of the Maala /Tel thrived in the connected, global society. Aviv Stock Exchange Index. I had no hesitation in including Maala as a good practice example in my book “Corporate Nevertheless, Responsibility Coalitions: The Past, Present and Future of Alliances for Sustainable Capitalism” – co-authored with we do believe that some of Jane Nelson from the Kennedy School of Government at the underlying ethos of Israeli Harvard University - in 2013. society and some of the The 2011 social protests in Israel, however, gave a greater specific approaches in Israel sense of urgency and importance to tackling social and economic exclusion. As one Israeli CEO noted at the time: today, are worth alerting an "Maala and the CSR arena need to take a long hard look international audience to.

Leaving No One Behind - 15 PREFACE David Grayson

INSIGHTS FOR OTHERS

There are some very specific challenges facing Israeli My personal perspective is that the society: how to better engage ultra-Orthodox Jewish business contribution to inclusive communities and how better to integrate Arab Israelis in society and specifically in economic activity. These growth is both a defensive, risk challenges, however, are mirrored in the challenges of mitigation strategy; but done well, integrating other marginalized communities, in other parts of the world: African Americans in the US, the French of can be even more, a proactive, North African heritage in France, communities from the opportunity enhancement Indian sub-continent in the UK, refugees and economic migrants across the world. strategy that is a “win-win” – a win for the business involved and Similarly, communities across the world face challenges a win for wider society. with ageing populations and specific issues like digital exclusion, elder-poverty, access to social care, inequalities For twenty years, I have argued that Corporate Responsibility in health and consequent differences in longevity. is not just defensive: reducing risks by minimizing negative Social, Environmental and Economic (SEE) impacts; but if it As the British social entrepreneur and founder of the is to be truly sustainable, it must be also about seizing the experiential learning Leaders Quest organization, Lindsay opportunities from maximizing SEE impacts. Indeed my first Levin, who has been a frequent visitor to Israel and book in 2001 was called: “Everybody’s Business: Managing Palestine in recent years, bringing groups of business Risks and Oportunities in todays’s global society.” 8 (Emphasis leaders and entrepreneurs to the region, has observed: added). The great management guru, Peter Drucker “Looking at developments in Israel is like holding up a mirror reflected this idea in a conversation shortly before he died in to one’s own country! People who came on quests to Israel 2005, when he said: came back with a better understanding of the complexity of the situation. But they still had their views.

That has changed over the last couple of years: Europeans and Americans are now also seeing Israel as a mirror of “Every global problem and their own situation. Israel is a fast forward of where they social issue" is a business are headed. So Israel has a lot of lessons for others to learn from.” opportunity in disguise.”

There are also the common opportunities - but also threats - from Artificial (or augmented) Intelligence and consequent mass job losses from automation. Societies This is very much the philosophy that Maala brings to this across the world face major questions about the future Inclusive Growth debate. " of work and therefore, how to provide life-long learning to enable workers to switch jobs and even careers on multiple Furthermore, and as an outsider, it is easier for me to say occasions. this, organisations like Maala are better placed to play a

16 - Leaving No One Behind bigger role in mobilizing business for Inclusive Growth in year track-record that Maala has in mobilizing businesses in Israel, than are their counterparts in say or Israel. As another Israeli CEO told one of the round-tables some parts of . This is because of Israel’s extreme convened by Maala in the autumn of 2011 in the aftermath geographic concentration, the “One-degree of separation” of the social protests, observed: “We need to come together connectivity in Israel, the country’s size and also the and start a dialogue. Maala is an excellent venue. There is no common bonding experiences that business and Civil other." Yet another opined at the same event: Society leaders in Israel have experienced through service in "Maala is the only organization that can unite businesses and the Israel Defence Force (IDF). It is also because of the 20+ start talking about those issues."9

PURPOSE OF PUBLICATION

The first goal of this publication, therefore, is to inspire more associations, employers federations and potential partners businesses in Israel to join in the efforts to improve inclusion; of business in Civil Society, trade unions and in the public and to encourage more collaboration, in order to scale-up sector, to learn from the experience of Israeli business in and achieve greater long-term impact. encouraging inclusive growth. This has become even more relevant with the launch at the Biarritz G7 Summit in August Our second objective, however, is to reach business of a three-year Business and Inclusive Growth Platform and internationally, Corporate Responsibility coalitions, trade initiative, under the auspices of the OECD.

OUR TITLE

We have called our book: “Leaving No One Behind.” For Quality Education, SDG 5: Gender Equality, SDG 8: Decent Israeli readers this will have a very specific resonance with work & Economic Growth, and SDG 10: Reduced inequalities. the long-held mantra of the IDF that no soldier should be Businesses across the world which are trying to improve left behind during military operations, evacuations – or if their performance on the SDGs should find useful tips here. captured. It also fits within a wider socio-political, cultural belief, in equality of opportunity. International readers The title is also something of a provocation and a call to hearing “Leaving No One Behind,” may first think of the action. Readers both Israeli and international, will understand link to the United Nations Sustainable Development Goals that sadly “Leaving No One Behind,” is far from a statement (SDGs) and the admonition to “leave no one behind.” of fact to-day – either in Israel or globally. Our title is a Inclusive Growth, of course, contributes to the fulfilment of statement of aspiration, rather than a description of current a number of the SDGs: notably, SDG 1: No Poverty, SDG 4: realities.

OUR PERSPECTIVE

We are not experts on Inclusive Growth – our locus is Happiness Index or the Well-being Index. We come to these knowing something about the role that business can play debates from the very practical perspective that businesses in contributing to Inclusive Growth – particularly in Israel. contributing to Inclusive Growth, if they do it well, benefit We are not here getting into the international debates from their actions as well as benefitting society. about how to measure progress in society such as the

Leaving No One Behind - 17 PREFACE David Grayson

OUR SOURCES

Nearly 30 companies are featured in “Leaving No One and typically also with Civil Society, JDC10, foundations Behind.” We have chosen these particular companies and / or government and municipalities. Apart from Maala because they have ranked as Platinum or Platinum-Plus itself, these collaborative initiatives include Co-Impact, 5x2, in the /Maala ESG Index or the Tmura and the Manufacturers’ Association. SME Index, have been a highly rated finalist or winner of the annual Dov Lautman Diversity Awards and / or are a We recognize that there are many other businesses in strategic partner of the JDC. In the case of the companies Israel – large and small, new and well-established – that which have been selected for the award, this was done are also contributing to Inclusive Growth, but in the by an independent panel of experts. Similarly, the criteria time available to us, we have had to give preference to for the Index are chosen by an independent committee of telling the stories of those experts, who are also responsible for the periodic updates businesses which have of the criteria. Again, the JDC is a respected centre of already submitted themselves expertise. We feel comfortable, therefore, in asserting that to some form of external the examples profiled represent what is currently leading assessment. We hope that practice in Israel. “Leaving No One Behind” will encourage more businesses We look at almost 40 different initiatives. As well as in Israel to publicise their individual company examples, we also highlight a number stories of how they are also of collaborations: groups of businesses working together contributing to Inclusive Growth.

OUR APPROACH

The Maala team are in regular contact with their almost a year – both face-to-face and via frequent Skype membership. Collectively, the team has a good overview of conference calls. The Maala team provided the in-depth the focus and activities of their member companies. This understanding of Responsible Business in Israel. My role existing knowledge was supplemented with nearly forty was to play the “critical friend,” challenging and probing: on-the-record interviews for “Leaving No One Behind.” “kicking the tires” of the arguments. Interviews where I was involved, were conducted in English. All interviewees were subsequently given the opportunity A draft of “Leaving No One Behind” was then reviewed by to check quotations attributed to them; and companies an international advisory panel of experts in Responsible were invited to fact-check their case-studies. Business and Inclusive Growth. This led to substantial re- writing and refinement of the key messages. We are most “Leaving No One Behind” is the product of frequent and grateful for their feedback. detailed conversations between the Maala team and I over

As the Maala team explain further at the end of the book, more businesses in Israel and also internationally, to join we hope that through these collective efforts, we have the drive for Inclusive Growth produced a collection of practical examples that will inspire

18 - Leaving No One Behind Leaving No One Behind - 19 TIMELINE OF BUSINESS AND INCLUSIVE GROWTH IN ISRAEL

Maala - Business for Social Responsibility is established Prime Minister’s Office Zionut2000 established Tri-Sector Round-table the Businesses for the on Public-Private- Community initiative Community Partnerships (Asakim Lema'an Global Financial Crisis Hakehila) 2007 2008

1998

Israeli Forum for Employment Diversity 2010 established First of annual 1999 Tel Aviv Stock Report of first Eckstein 2006 Matan - Investing in Exchange/ Committee on measures the Community - a Maala Index to increase participation non-profit promoting of Arab Israelis and Ultra- corporate philanthropy Orthodox Jews in the is founded. labour market

2011

2002 2005 Arab Spring movement Israel Summer Social Protests Tmura - The Israeli Announcement Public Service of Tel Aviv Stock Occupy Movement in US, Europe Venture Fund - Exchange/Maala Impact First Investment became founded Index of responsible Israel’s first impact investment fund businesses

20 - Leaving No One Behind Report of second Eckstein Committee on measures to Launch of the further increase participation Maala CSR Basic of Arab Israelis and Ultra- Index for mid- Orthodox Jews in the labour size companies market by 2030

2016 2018 Maala announces “Israeli Business & Inclusive Growth” study

Maala and JDC start initiative on 2015 social mobility of low-paid workers

Launch of 5x2 Initiative to improve Maths & Science grades of schoolchildren New Strategy for JDC published 2019 Israeli Manufacturers 2014 Association launches new Economic & Social Forum 2013 The Dov Lautman Diversity Award launched by Maala and the Israeli Forum for Employment Diversity

The Responsible Business Enhanced Tel Aviv Stock Conduct (RBC) unit established 2020 Exchange/Maala ESG by the Israeli Ministry of Index criteria applied, Economy and Industry including extensive 2012 additions relating to inclusive growth Government initiative on employment of Arab Israelis and Ultra-Orthodox Jews

Trajtenberg Committee Report on how to respond to the social protests

Leaving No One Behind - 21 PART ONE

Chapter 1 | INCLUSIVE GROWTH

In October 2013, an influential group of international leaders, under the chairmanship of Pascal Lamy – the former director-general of the WTO (World Trade Organization) – issued “Now for the Long Term: The Report of the Oxford Martin Commission for Future Generations.” The report – produced under the auspices of the Oxford University Martin School – began with an arresting opening sentence: “NOW is the best time in history to be alive.”11

The report continued with a justification for this bold statement: "Our world has experienced a sustained period of positive change. The average person is about eight times richer than a century ago, nearly one billion people have been lifted out of extreme poverty over the past two decades, living standards have soared, life expectancy has risen, the threat of war between great powers has declined, and our genetic code and universe have been unlocked in previously Amongst the systemic risks that the report identified was inconceivable ways. Many of today’s goods are unimaginable that of growing inequality. without collective contributions from different parts of the world, through which more of us can move freely with a The campaigning NGO Oxfam has been provocatively passport or visa, provided we have the means to do so. Our highlighting the extreme wealth inequalities across the world. world is functionally smaller, and its possibilities are bigger In its latest annual wealth check released to mark the start of and brighter than ever before. Never before have so many the World Economic Forum in Davos each year, Oxfam said people been optimistic about their future.”12 2018 had been a year in which the rich had grown richer and the poor poorer. According to Oxfam, the 26 richest Nevertheless, the authors of the report went on to recognise: billionaires own as many assets as the 3.8 billion people who make up the poorest half of the planet’s population. “Oxfam said the wealth of more than 2,200 billionaires across the globe had increased by $900bn in 2018 – or “While the future is full of $2.5bn a day. The 12% increase in the wealth of the very " richest contrasted with a fall of 11% in the wealth of the opportunity arising from the poorest half of the world’s population. extraordinary advances of As a result, the report concluded, the number of billionaires recent decades, it is also highly owning as much wealth as half the world’s population fell from 43 in 2017 to 26 last year. In 2016 the number was 61.”13 uncertain and characterised by growing systemic risks.” This “Winners take all” outcome, high rates of unemployment and under-employment in many parts of the world, and enforced public-sector austerity in many societies since the 22 - Leaving No One Behind " Global Financial Crisis of 2008 have resulted in less than 1 in growth. The micro determinants capture the importance 5 of the general public across the world agreeing with the of structural transformation for economic diversification. statement “the system is working for me,” according to the Absolute growth that is pro-poor can be the result of 2019 Edelman Trust Barometer.14 direct income redistribution schemes to address issues of inequality, but for growth to be inclusive, productivity must As Aron Cramer, CEO of Business for Social Responsibility, be improved and new opportunities for employment need has recently observed: to be created.

As an OECD report prepared for the OECD Council meeting at Ministerial Level in May 2018 noted: “decreased economic “There is a clear economic imperative to tackle increased " inequalities in income and opportunities in many OECD and security and mobility are not partner countries. Indeed, bringing together an agenda for simply “today’s issues”—they higher productivity with policies for inclusivity will enhance outcomes that matter for people. Moreover, inaction comes reflect structural changes in our with risks. Inequalities are undermining people’s confidence world and our economy that in open trade and markets and could further weigh on long- demand attention." 15 term growth and macroeconomic stability. Globalisation, digitalisation, demographics and climate change are transforming the way economies work, providing new opportunities for growth, but also raising the risk of deeper inequalities if the gains from growth are not evenly It is statistics like these,that has provoked increasing focus shared among people, firms and regions. The focus on " stronger productivity growth is necessary, but not sufficient on the question of Inclusive Growth. This has become particularly acute with the rise of populist movements in to sustain economic growth over the long-term unless equity many countries. issues are also addressed…”17

The OECD defines “inclusive growth” as “economic The 2015 Inclusive Growth and Development Report from growth that is distributed fairly across society and creates The World Economic Forum identified 15 domains that are opportunities for all” and as “economic growth that important for promoting social inclusion. These include creates opportunity for all segments of the population and educational opportunity and performance, the relationship distributes the dividends of increased prosperity, both in between productivity and wage growth, physical and digital monetary and non-monetary terms, fairly across society.”16 infrastructure, and the coverage and adequacy of basic This is consistent with the findings in the Growth Report: social protections. They also include areas that are not Strategies for Sustained Growth and Inclusive Development traditionally considered as equality-enhancing, such as (Commission on Growth and Development, 2008). The facilitating asset building through small businesses. commission suggests that inclusiveness encompasses More recently, Morgan Stanley’s Institute for Sustainable equity, equality of opportunity, and protection in market and Investing and The Economist Intelligence Unit have defined employment transitions. the concept of inclusive growth as “broad-based economic growth that benefits societyand is sustainable over time.”18 The rapid and sustained poverty reduction that is required (Emphasis added) This definition helpfully positions Inclusive for inclusive growth allows people to contribute to, and Growth within the constraints of planetary boundaries such benefit from, economic growth. Inclusive growth implies as Climate Change, resource depletion, biodiversity loss a direct link between macro and micro determinants of and pollution. These are, of course, interlinked. The Climate

Leaving No One Behind - 23 PART ONE Chapter 1 | INCLUSIVE GROWTH

Emergency, for example, has major societal impacts as extreme droughts force more and more people to become Climate migrants.

Defining Inclusive Growth The Economist Intelligence Unit defines inclusive growth healthcare and education alongside financial tools to as economic growth that is shared across sectors, that promote security and provide opportunity for risk-taking. is sustainable, that produces productive employment Quality financial, healthcare and education services—the opportunities, that reduces poverty and inequality and, “pillars” of inclusion—as well as other vital services must more generally, that provides for broad participation in the be accessible, regardless of income, gender, minority benefits of growth. status, ethnicity or location. Inclusive growth helps ensure that people have the means This study aims to highlight the role that private investment and tools to contribute to and benefit from growth. This can play in support of inclusive growth and to provide an entails having the necessary building blocks to engage analytic framework to enable investors to explore where in employment and entrepreneurship: namely affordable opportunity may be strongest.

Inclusive growth sup Broad-based economic growth that provides wide opportunity for participation port

Productive employment Opportunity for entrepreneurship

Financial inclusion Inclusive healthcare Inclusive education Gender inclusion Pillars of inclusive growth

Source: Inclusive Growth Opportunities Index 2017 Navigating In-Country Opportunities for Technology-Enabled Sustainable Investing – Morgan Stanley & Economist Intelligence Unit. 19

Access to Education Children from low socio-economic backgrounds need to Interventions may include: be a particular focus of educational, cultural and health • evidence-based parenting programmes, home visits for policies to tackle what will likely otherwise be life-long troubled families to connect to the resources they need to educational inequalities, preventing individuals from improve their children’s learning environments; disadvantaged backgrounds climbing the socio-economic ladder. This is necessary to create a more sustainable and • supporting disadvantaged schools: allocation of sufficient inclusive economic growth and social cohesion. financial and human resources to disadvantaged schools

24 - Leaving No One Behind to compensate for lack of high quality education and, extra In the face of these challenges, the global consultancy training opportunities for students from disadvantaged Deloitte found in a recent survey that backgrounds a majority of business leaders • beyond formal education: actions to ensure skills are kept up to date and developed - especially among low and are supportive of changing their middle-skilled adults and migrants. Low or outdated skills corporate practices to foster are a common barrier for both the unemployed to find work 20 and for employees to keep up with the evolving needs of the more inclusive growth. workplace They believe this new model of capitalism can feed • improvement of basic skills to enable participation in innovation, strengthen resilience and contribute to their further learning: many adults who have dropped out of competitiveness overall. school early may only have basic levels of literacy and numeracy skills. This is a great obstacle to entering the job market or participating in training later in life. It is therefore crucial that these adults are provided with adequate opportunities to improve their basic skills

• innovative and flexible learning opportunities to overcome access barriers for the most vulnerable groups: such as young adults who are not in education, employment, or training (NEETs), single parents and immigrants with low levels of educational attainment

• combining adult education, job training and careers The financial crisis of 2008, followed by a sudden spike in guidance to reintegrate unemployed adults into the labour unemployment and productivity stagnation, compounded market. years of rising health, wealth and income inequality. This has marked a challenge to globalisation and market capitalism. Helping everyone to make the most of their schooling and The case for inclusive growth reached new heights and subsequently to have the opportunity and the hunger for the IMF and World Bank, amongst others, made a pitch for lifelong learning is, therefore, fundamental to tacking social greater shared prosperity as a tool for social unity. Several and economic exclusion and building more inclusive societies. governments have put inclusive growth high on their policy agenda, notably the world's most populous and fastest growing Current employment & future employability countries, China and India. In the UK, there has been an Inclusive Growth involves tackling the scourge of Inclusive Growth Commission (RSA) and there is an All-Party unemployment and under-employment today, but also Parliamentary Group on Inclusive Growth which aims to create improving employability in the future, in the face of pervasive a parliamentary space for a high-level dialogue between market disruptions – especially driven by what the World Members of Parliament, peers, businesses, faith groups, Economic Forum has characterised as the Fourth Industrial trade unions and academics. The goal is to identify how to Revolution. This Fourth Industrial Revolution will lead to reconnect wealth creation and social justice; and to forge a widespread automation of many jobs, including many new consensus on inclusive growth and identify the practical white collar ones in law, accounting etc. This is particularly next steps for reform. The OECD has proposed a framework important in the context of intergenerational mobility. for policy action on Inclusive Growth: see figure below.

Leaving No One Behind - 25 PART ONE Chapter 1 | INCLUSIVE GROWTH

The OECD Framework for Policy Action on Inclusive Growth – MAY 2018

With the aim to achieve growth that benefits all, and that allows for people, regions and business Firms CONTEXT to fulfil their potential, the framework • Globalisation would look like: • Digitalisation • Demographics • Climate change

PILLAR 1 PILLAR 2 Invest in people and Sustain Support business places left behind, and share dynamism and providing equal PILLAR 1 equitably PILLAR 2 inclusive labour opportunities the gains of markets growth

People Places

PILLAR 3

PILLAR 3 Build efficient and Source: OECD Secretariat responsive goverments

It is also significant that since the global financial crisis philanthropy or environmental, social and governance (ESG) of 2007-08, a number of business-led initiatives have investment alone—both of which are critically important. emerged, which might be grouped under a broad heading of “reimagining” or “renewing” or “resetting” capitalism. This is not about trading off These include Focus on Capital for the Long-term, business interests against social Sustainable Capitalism, Conscious Capitalism and Inclusive Capitalism. More recently, the Business Round-Table, interests. It’s about recognizing representing more than 180 top CEOs in the USA has that businesses thrive in a issued a new statement on the Purpose of business21. Mastercard has created a Centre for Inclusive Growth.22 thriving world and fail in a system As Michael Froman, Vice Chairman and President Strategic that fails too many. Growth, Mastercard, wrote in September: It is in shareholders’ interests that we explore how to use our “To achieve solutions at scale, we cannot rely on

26 - Leaving No One Behind products, technology, business models and understanding of ecosystems to address these fundamental social and economic challenges.”23

Morgan Stanley’s Institute for Sustainable Investing has established a workstream around Business and Inclusive Growth. This has included an important report in 2017: “Inclusive Growth Drivers: The Anatomy of a Corporation.” This identified four pillars of how businesses can contribute to inclusive growth (see diagram)24. We have adopted and slightly adapted this framework for this publication.

HUMAN RESOURCES PRODUCTS AND SERVICES OPERATIONS MANAGEMENT FIRM MANAGEMENT Recruitment Research and Development Logistics and Distribution AND GOVERNANCE Workforce Management Sales and Marketing Procurement and Supply Chain Strategy Compensation and Benefits Information Technology Finance and Accounting External Relations Governance and Risk Management Source: Morgan Stanley "Inclusive Growth Drivers: The Anatomy of a Corporation

Before we examine just how businesses in Israel have changed their corporate practices in order to foster Inclusive Growth, we examine first the specific challenges of social and economic exclusion in Israel; and then the distinctive features of Israeli society which are shaping how businesses in Israel approach Inclusive Growth.

Leaving No One Behind - 27 PART ONE

Chapter 2 | SOCIAL & ECONOMIC EXCLUSION IN ISRAEL TODAY

Introduction As the 2018 Economic Survey of Israel published by Israel has become a global high-tech hub with - according the OECD, makes clear, the country is enjoying a strong to Dan Senor - 360 multinational R&D centres - the highest economy and is benefiting from its unique demographics: per capita concentration in the world - see Illustrative figure from Lior Weizman, Deloitte Israel: Multinationals’ R&D • israel is experiencing its 15th consecutive year of stable Centres in Israel. economic growth

• On average, GDP increased by 4.0% annually - faster Israel also enjoys an enviable reputation for its than any other OECD country 25 entrepreneurial culture and support eco-system, as these statistics compiled by Eytan Messika from the European • Unemployment is historically low venture capital fund / platform OneRagtime, demonstrate.27 • The average standard of living is improving steadily.

These impressive outcomes are expected to continue in the short term, according to the 2018 OECD Survey on Israel.26

Multinational R&D & Innovation Centers in Israel

Lior Weizman, Deloitte Israel: Multinationals’ R&D Centres in Israel.

28 - Leaving No One Behind Israel's Innovation Secret 28

#1

#1 country in terms of high tech employee concentration: 250 000 high tech employees country with Nasdaq-listed companies (around 1 per 10 working people) except the U.S. and China

#1 #1 country in terms of VC Investment 1 in the production of per Capita and as a % of GDP scientific papers

#1 #1 out of 148 economies in innovation country in terms of start-ups abilities, #2 in entrepreneurship and #3 concentration: there’s 1 start-up for every in global innovation according to the 2016 400 people and 1 start-up each 19km2 IMD Competitiveness Yearbook

#1 #1

country in terms of R&D employees out of 60 leading economies around the world for concentration: 140 per 10,000 (the U.S. technological and scientific abilities according to comes in second with 85 per 10,000) the annual Global Dynamism Index (GDI)

Source: Eytan Messika (2018)

TWO ECONOMIES However, there are also significant challenges. Inequality is and rising poverty, unless workforce participation rates can high; according to the World Economic Forum’s Inclusive be improved markedly for the Ultra-Orthodox, Arab Israelis Growth Report 2018, Israel has the highest poverty rate and people with disabilities. Israel also faces an “ageing amongst the advanced economies (19.3%); minorities are bulge” and significant elder poverty. Furthermore, there under-represented in the labour force with consequent are risks of rising social and economic exclusion of those high poverty levels; and as minorities grow as a percentage who are less technologically literate as the Digital Society of the total population, there will be declining productivity intensifies.

Leaving No One Behind - 29 PART ONE Chapter 2 | SOCIAL & ECONOMIC EXCLUSION IN ISRAEL TODAY

Inequality Inequality is high as the Inclusive Growth Opportunities Index 2017 showed: see diagram. 29

Inequality is most pronounced in Brazil and the US Inequality indicator (aggregated score of all six subindicators)

64.9 62.7 52.4 51.4 49.4 47.9 44.7 44.2 41.6 41.4 39.9 39.8 37.1 36.8 32.8 30.5 28.5 24.5 24.3 20.9 Us Uk India Cuba Israel Brazil Kenya China Turkey Poland Nigeria Mexico Rwanda Australia Argentina Indonesia Bangladesh South Korea South Netherlands Saudi Arabia

Source: Inclusive Growth Opportunities Index 2017

Other significant challenges in Israel to-day include: • And, during the 2020s, as the immigrants who came to Israel from the former Soviet Union during the 1990s, age, • In-work poverty there will be a very significant, added dimension of the • Low workforce participation amongst marginalised elderly poor, due to the limited pension provisions for many communities: the Ultra-Orthodox, Arab Israelis and Israelis of these Olim. with disabilities

Inequality and poverty remain high 2016 or latest year available

A. Income inequality1 B. Relative poverty2 Percent 18 20 18 45.1 49.4 15 16 12 14 12 9 10 8 6 6 3 4 2 0 0 ITA ITA ISR ISR ESP ESP JPN FRA PRT JPN FRA PRT USA USA TUR CHE TUR CHE KOR NLD KOR NLD DEU GBR DEU CAN GBR CAN DNK DNK OECD OECD HAREDIM Israeli Arab Israeli

Source: OECD Economic Survey: Israel 2018 Overview Other Israelis

30 - Leaving No One Behind As the OECD explained in its Economic Survey of Israel (March particularly weak among Haredi men and Arab-Israeli 2018): "Israeli society is marked by significant disparities women….These demographic changes mean that per capita between different communities. Most Haredim and Israeli- GDP growth will probably slow in coming decades. Arabs live separately from the rest of the population. They have different school systems, live mostly in different cities, Deomgraphic trend by community group and do not serve in the army. This contributes to different outcomes in the labour market, education and earnings. Israeli-Arabs Haredim Other israelis Given their tendency to have very large families, the Haredi 100% 100% demographic share is projected to nearly triple in the coming 21% 21% 19% decades to almost 30%. This will have serious economic 80% 80% implications, since Haredi men have a cultural preference 11% 20% 32% in full-time religious studies rather than participate in the 60% 60% labour market and avoid core subjects in their school careers. 40% 40% Furthermore, Haredi women can work only part time because 68% 59% of their family responsibilities. The majority of Israeli Arab 48% 20% 20% women also do not participate in the labour market due to cultural preferences. The result is that most Haredi and Arab 0% 0% families have only one breadwinner, resulting in significant 2015 2025 2045 2035 2055 2065 problems of poverty, notably among children." Source: Israeli Central Bureau of Statistics Demographic trends by community group Israeli-Arabs Haredim Other israelis Improving education and workforce 100 participation of minorities 80 The OECD also concluded: "Further improving the Haredim and Arab-Israelis’ (youth in particular) integration into society 60 through better education and training leading to a lower productivity gap with non-Haredi Jews from around 40% 40 currently to, say, 20% in 2059 would raise average annual per capita GDP growth by 0.2 percentage point. These reforms 20 would shrink existing income disparities within Israeli society and the shortfall in living standards vis-à-vis the OECD 0 2015 2040 2065 2015 2040 2065 average to 10% in 2059." Population under 14y Total population Source: OECD Economic Survey: Israel 2018 Overview The labour market is still characterised by severe duality. On the one hand, there are productive advanced industries, “Given the high fertility of Haredi women, which is assumed including high-tech sectors, which attract mostly high-skilled to remain largely unchanged, the share of that community workers with high wages. On the other, low-productivity, in the total population would triple in the next 45 to 50 often non-tradeable, sectors employ many Arab-Israelis years, with the total share of Arab Israelis and Haredim rising and Haredim who are trapped in low-quality, low-wage from one-third to one-half over this period (CBS, 2017b). jobs. Israel’s share of low-paid workers is one of the OECD’s Despite recent improvements, these groups have poorer highest Many disadvantaged workers have been able to labour-market outcomes and much lower productivity than find jobs, but their families remain poor, since in most cases non-Haredi Jews, and labour force participation remains these jobs are low-paid.

Leaving No One Behind - 31 PART ONE Chapter 2 | SOCIAL & ECONOMIC EXCLUSION IN ISRAEL TODAY

There is a high share of low-paid jobs in the labour market share of low paid workers

28% 28%

24% 24%

20% 20%

16% 16%

12% 12%

8% 8%

4% 4%

0% 0% ITA IRL ISR ESP BEL CZE JPN PRT SVK NZL AUS USA AUT KOR DEU GRC GBR CAN DNK MEX HUN OCED Source: OECD Economic Survey: Israel 2018 Overview

Working Poor Amongst Israelis with disabilities: 34% of employees with Indeed, the share of the working poor has risen in recent disabilities earn below the minimum wage (5,300 NIS; $1,500) years and is internationally high. This is particularly true for versus only 26% of employees without disabilities. the Haredim and Arab-Israelis, for whom the increased The same thing applies for earning higher income levels: with number of breadwinners per family in the last decade average salaries of peple with disabilities around 7,000 NIS (including part-time workers) has had only a limited impact ($2,000), only 33% of employees with disabilities earn above on their poverty risks. Hence the need to focus more on the average salary versus 46% in the general population.31 decreasing poverty among those in work. the israeli-Arabs and Haredim have Extensive poverty and inequality in Israeli society are to a significantly weaker labour market outcomes significant extent due to the wide dispersion of skills. Israel labour force participation median wage as a % of the has one of the largest gaps between adults with outstanding rate (2016) national median wage (2015) % of labour force competences and those with weak outcomes. The share of 90 120 adults with top-notch numeracy skills is comparable to the 80 100 OECD average, but the proportion of low-skilled adults is 70 exceptionally high: for example, almost one-third of Israelis 60 80 lack basic math skills. These differences are particularly 50 60 pronounced between communities, which exacerbates 40 already strong socio-economic divisions in Israeli society. 30 40 Large wage gaps between Arab-Israelis and Haredim and the 20 20 rest of the population can for the most part be explained by 10 Non-Haredi Jews Non-Haredi Jews Non-Haredi Israeli-Arabs Haredim Israeli-Arabs Haredim differences in skills.30 0 0 Source: Israeli Central Bureau of Statistics & Israeli Ministry of Finance

32 - Leaving No One Behind Differential Poverty Rates Consequentially, poverty rates vary considerably amongst different components of Israeli society.

Israel poverty rates 1998 - 2016

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Non-Haredi Jews total population Haredim Israeli-Arabs

Source: Haredi Institute for Public Affairs Data: Central Bureau of Statistics

Older Workers PricewaterhouseCooper’s Golden Age Index assesses the their pensions, and apparently also played a role in Israel’s impact of older workers on different aspects of a country’s economic growth over the past decade. Older workers – labour market, including employment, earnings and the those at or near retirement age – account for about 10% of gender gap. The 2018 Golden Age Index ranks Israel third Israel’s workforce.32 amongst OECD nations for participation of older workers. Iceland topped the 2018 index with 84% of the 55-64 age Nearly 60% of women and men in retirement age, 62 and 67 range employed, compared with the OECD average of 60%. respectively, don’t have any pension arrangement and 20% New Zealand was second (78%) and Israel third (66.8%). need to receive extended social security.33

The percentage of older people working increased Given these statistics, it is perhaps unsurprising that Israel significantly over the past 10+ years because the retirement ranks 25th for Inclusive Growth amongst the advanced age in Israel has been gradually increased since 2004. This economies, according to the World Economic Forum34 raised the average incomes of older citizens, as well as

Leaving No One Behind - 33 PART ONE Chapter 2 | SOCIAL & ECONOMIC EXCLUSION IN ISRAEL TODAY

2011 SOCIAL PROTESTS It was against this general background that the 2011 Social social justice; for everyone… justice that can leap over the Protests took place. The demonstrators called for a new fault lines of the past”35 social compact, based on greater social justice and equity. Three main drivers behind the protests can be clearly As Trajtenberg went on to argue: identified: “Indeed, every society is measured by its ability to change • The first was the financial adversity of individuals and and rebuild itself according to varying circumstances while families forming the backbone of Israeli society, especially minimizing the human cost charged by the change. The the adversity of young working families; educated Israeli society has mostly excelled in evolution: starting individuals with proper employment skills, who could not from the waves of immigration and the shrugging off of cope with the cost of living, with the housing expenses, and the norms of the Diaspora, the establishment of new with proper care and education for their young children. institutions and social orders (the Work and Defense • The second source of the protests was the deep-rooted Battalion- Gdud HaAvoda, the , the Histadrut etc.) feeling of injustice, specifically related to the increase in and up to turning the Israeli economy into a vibrant market the inequality, and those who have become rich at others' economy after the emergency programme of 1985. These expense. changes and others required a tug of war, but they never resorted to severe violence or chaos, and society in Israel • The third source of the protests stemmed from the knew how to quickly align itself with the new institutions widespread and dangerous feeling of alienation - and even and norms and confidently march forward towards the detachment from the state institutions, perceived as not next challenge. This is a quality and a blessing not easily serving the people. found in many countries worldwide.”36

As the chairman of a committee of inquiry into the causes of It might be argued that the 2011 social protests represent the social protests, appointed by the Israeli Government: the another chapter in the history of Israel. There is, however, a economist Prof. Manuel Trajtenberg concluded in his report: wider business case for businesses in Israel taking a more proactive approach to Inclusive Growth. “The people demand social justice-not special privileges, not a bigger piece of the pie at the expense of another, but

34 - Leaving No One Behind Business Case More broadly, as the global responsible business coalition Israel has low unemployment so there is a clear manpower - the World Business Council for Sustainable Development need to be more proactive in pre-recruitment training, - makes clear: it is hard to do business on a dead planet making workplace adaptations and thereby being and similarly, businesses cannot succeed for long in failed able to recruit from a wider talent pool. The same HR societies. If economic growth is only enjoyed by the few, it business case also applies to being more proactive will not be sustained by the many. As former UN Secretary in making adjustments, offering flexible working and General the late Kofi Annan once noted: "If we cannot make providing additional help to employees from marginalized globalisation work for all, in the end it will work for none." communities, to enable them to stay in the workforce and also to progress from entry-level posts to more senior jobs. How Israeli businesses have responded will be examined B2C businesses have a business rationale to attract and in subsequent chapters. However, this business response retain customers by improving digital and financial literacy; is very much grounded in the particular features of Israeli and helping to increase spending power of consumers society – and it is these features that we examine in the through, for example, lobbying for increases in pensions. next chapter. There is also a rationale for a long-term value-creation by capacity building B2B customers and suppliers.

Leaving No One Behind - 35 PART ONE

Chapter 3 | THE ISRAELI DYNAMIC AND HOW THIS DRIVES A FOCUS ON INCLUSIVE GROWTH

A number of the interviewees for this book, argued that the “…One thing is clear: the demographic processes that efforts of Israeli businesses to tackle social and economic are reshaping Israeli society have in fact created ‘a new exclusion, owe a great deal to a unique combination of Israeli order,’ an order in which there are no longer a clear features that have shaped Israeli society overall. This is not majority and clear minorities. An order in which Israeli to deny the relevance of the international arguments for society is composed of four sectors, or – if we choose – businesses contributing to inclusion. Nor is it to under-play four central ‘tribes,’ essentially different from one another the profound impact on many business leaders of the 2011 who are progressing towards equal sizes…Whenever I Social Protests. The 2011 protests did lead many businesses describe this distribution, I am always asked: ‘and what to take a more strategic and long-term approach. However, about the distribution between Ashkenazi and Sephardi all these factors particularly resonated because of the Jews?’ Between Left and Right? Periphery and centre? distinctive nature of Israeli society. What might be called Rich and poor? Are these not dividing lines that segment the “Israeli Dynamic.” and tear apart Israeli society? And the answer is, of course they are. Those dividing lines unfortunately exist – within Multiculturalism as an Asset each of the population sectors, and through all of them These distinctive features include together – and they must be addressed and dealt with.” the reality that Israel is a very young “The ‘new Israeli order’ now requires us to abandon the country – with a very ancient history. accepted view of a majority and minorities, and move Israel is comprised of many varied to a new concept of partnership between the various ethnic, religious, cultural and social population sectors in our society. Clarification of the backgrounds and indulging a myriad essence of that partnership is the task of all of Israeli of lifestyles; vastly urban with vibrant rural communities; society” abundant modernity with highly traditional groups; secular majority with freedom of faith and worship.37 The four central “tribes” that President Rivlin referred to are the Observant, mainstream religious; the Ultra-Orthodox; Modern Israel has been built on successive waves of the secular Jewish; and the Arab Israelis. mass immigration, which means that the population The wide array of diverse ethnic, religious, cultural has continuously had to adapt and accommodate and and social backgrounds have shaped Israel’s globally assimilate new influxes – being proactive in identifying what distinguished and unique social composition. In this “young new adaptations might be necessary. In size, “Israel’s land society with ancient roots” (Forbes), the inflow of new mass is smaller than New Jersey, but it is home to people immigrants has long been an asset, and the key engine to from over 70 nationalities.”38 Israel’s economic vitality and success. In 2014 alone, “a third of the people in Israel were foreign- In June 2015 the President of Israel Reuven Rivlin, delivered born, a comparable proportion with other innovation hubs a speech at the Herzliya Conference marking the first such as Silicon Valley and New York.”39 anniversary of his tenure. The speech is often referred to as “the speech about the tribes” and has become an important text in Israeli public discourse.

36 - Leaving No One Behind The Israeli Defense Force historian Michael Oren, who served in the IDF as a liaison A particularly crucial feature of Israeli officer to other militaries, is quoted in Start-Up Nation as society is the role of the IDF: the saying: Israeli Defense Force – in which most young Israelis – male and female – “The Israeli lieutenant probably has greater command are obliged to serve. decision latitude than his counterpart in any army in the world.” “Normally, when one thinks of military culture,” write Dan Senor and Saul Singer in Start-up Nation, “one thinks of A unique culture has developed in the IDF, encouraging strict hierarchies, unwavering obedience to superiors, and intuition, improvisation and high-risk taking. Prioritizing an acceptance of the fact that each soldier is but a small, results gives soldiers the space to be creative and uninformed cog in a big wheel. But the IDF doesn’t fit that innovative in the processes used.41 Senor and Singer also description. And in Israel pretty much everyone serves in argue that authority in the IDF very much has to be earned; the military, where its culture is worked into Israel’s citizens soldiers are expected to speak up and question; and over a compulsory two- to three-year service. The IDF’s there is an intense process of debriefing and continuous downward delegation of responsibility is both by necessity learning. and by design.”40 A similar point is made by Avishai Abrahami, Founder of The IDF is a central institution in Israeli society with strong Wix, particularly in relation to the elite intelligence and mutual influences. In many ways, the army is a reflection cyber-security units of the IDF like Unit 8200: The culture of Israeli society. In addition to its primary military missions, and educational methodology there is exceptional: the army carries out important social and economic functions. It is generally perceived as a "nation builder", “There’s nobody around to tell you how to do it. “The bringing together Israelis from all walks of life to construct culture inside–and it’s by design–is that your superiors just national identity and unity. In a country whose population tell you to go figure it out. That gives you the huge freedom has grown five-fold since independence 70 years ago and to think differently. It’s you or nobody else. And when you’re where in 2014, one in three of the population were foreign- an entrepreneur, that’s the most important skill. When you born, the IDF creates a powerful “melting pot” bonding. do 5 or 10 or 20 of those projects, you’ve just built 3 things that could be a start-up.”42 International readers could be forgiven for mistakenly equating this focus on the role of the IDF and the enduring Senor and Singer argue in Start-Up Nation that these are impact it has, with the nostalgic desire by some people important drivers of the entrepreneurial culture that has in some other countries, to “bring back national service flowered in Israel over the last two decades. We would / conscription;” in order as they might put it, to “sort out” argue that the IDF culture which embues young Israelis young people and instill a sense of “respect for authority.” with a sense of responsibility for their team and a strong What Senor and Singer identify is something rather sense of obligation to “leave no one behind” has also different. contributed to the sense of leaving no one behind in society too. In the IDF, people from very different backgrounds are thrown together and given significant, operational The young adult being discharged from military service responsibility at a very young age, including frequently, the knows the country better, has learned to know and requirement for very young and junior officers to make live with the multi-culturalism typical of Israeli society; what may literally be “life and death” decisions. As the had tangible experience of the importance of personal

Leaving No One Behind - 37 Chapter 3 | THE ISRAELI DYNAMIC AND HOW THIS DRIVES PART ONE A FOCUS ON INCLUSIVE GROWTH responsibility, responsibility toward the group, friendship Chutzpah and comradery, professionalism, adhering to a mission, Dan Senor and Saul Singer also discipline; experienced organizational assignments and identify chutzpah as a key driver of leadership experiences; these types of experiences Israel’s dynamic start-up culture. design the soldier's personality, and they emerge equipped In their book Start-Up Nation, accordingly for civilian life.43 they defined chutzpah as gall, brazen nerve, affrontery, incredible guts, presumption, As Micky Adiv, Chairperson of Maala and CEO of G1, an arrogance (page 36) and argue that “assertiveness is Israeli-headquartered security, safety and technology the norm.” When combined with the other drivers of group, told us: “companies and CEOs have historically done Israeli entrepreneurial spirit, chutzpah encourages risk- this {Inclusive Growth} organically. It is in the DNA.” taking, active seeking out of contacts and soaring self- Adiv went on to explain: “the Army is a melting pot…after confidence that things can be achieved. This can also 1948, it was moulding a new society. Absorption is part apply to businesses in Israel taking more initiative to drive of the DNA. It is not learnt on an MBA programme. There Inclusive Growth. is no artificial way of creating the existential tension that my generation felt, the personal experience of financial A tradition of social insecurity. Your military service gives you self-discipline, but innovation it is also a School of Purpose.” Building social and economic inclusion in an era of globalisation, Adiv may have been unconsciously echoing the idea of the global connectivity, Climate distinguished American historian Barbara Tuchman: Emergency and hyper global inequalities will require rapid social innovation. Happily, “with all its problems, Israel has one commanding Israel has been about social innovation since even before advantage: a sense of purpose. Israelis may not have its inception – for example as seen with the kibbutz and affluence or the quiet life. But they have what affluence the work in Israel of the Joint Distribution Committee: JDC. tends to smother: a motive.”44 The connectivity of Israeli Adiv also emphasised that “as a commander your job is society to maintain equality. If you see someone does not have Another feature of Israeli society the social skills, you have to take care of it. Just as you which is reinforced by military service take responsibility for people under your command, so and then continuing, annual service in there is a sense that you must take responsibility for your the Army Reserves over many years, employees.” 45 is the extreme connectivity of Israeli society.

The fact, therefore, that relatively few Arab Israelis or Ultra- In popular culture, we talk about called Six Degrees of Orthodox Israelis serve in the IDF, has a very significant Separation – a theory first proposed by Frigyes Karinthy impact, since these communities have missed out on the in 1929. The theory states that each of us are just 6 education, leadership development and deeper social introductions away from any other person on the planet, networks that service in the IDF provides. and any two strangers are, on average, distanced by precisely 6.6 degrees of separation. In Israel, however, the

38 - Leaving No One Behind theory applies differently—you are always, so the saying One manifestation of this today, is in the way that Israel’s goes, one degree of separation.46 high-tech, entrepreneurial start-up scene is becoming active in social innovation. David Yin from Forbes magazine described the consequences of this in an article entitled: “What Makes As Benny Levin, Vice Chairman of the Israeli Venture Israel's Innovation Ecosystem So Successful.” Network wrote in the Jerusalem Post: Yin describes the one degree of separation as it plays out in Israeli society and its contribution to an innovative “Many high-tech entrepreneurs who manage large market: companies are giving back, using their expertise as well as their wealth to establish community-based non-profit “From army to school to neighborhoods, many social organizations and associations to benefit under-served circles overlap and grow into a large, interlinked network. sectors of society.” 50 Community connections become industry connections and vice versa. It is not uncommon for friends to discuss In the same article, Levin went on to argue: a new idea over the dinner table and start building a “I urge my fellow high-tech entrepreneurs who invested prototype the next day.”47 their energies in turning Israel into the Start-Up Nation to divert some energy to closing the gaps in Israeli society. “Another factor is the geographic concentration of Don’t just give away money; invest in social investment institutions such as universities, multinationals, and funds and use your business skills to teach social startups.”48 entrepreneurs to build businesses that help develop the economy of challenged regions in the country, provide “In Israel, the close proximity of innovation institutions employment to marginalized populations, and assist in creates a certain buzz. People work alongside and together the development and social advancement of the State of with each other. Many constantly shuffle between academia, Israel. The next Social Start-Up Nation.” military, entrepreneurship, R&D, policymaking and venture We will look further into how they are doing so, in later capital, sometimes wearing several hats at once” 49 chapters and particularly in chapter 8.

This degree of separation does not just produce innovation and entrepreneurial success. It is also an important extra driver of Social Solidarity.

Leaving No One Behind - 39 PART ONE

Chapter 4 | DEFINING THE CONTRIBUTION OF BUSINESSES IN ISRAEL TO INCLUSIVE GROWTH

In this chapter, we look at some recent, international and strengthen efforts by private companies to reduce models of how business can contribute more effectively to inequalities linked to opportunity, gender and territory, Inclusive Growth and then consider how these could be and to build greater synergies with government-led and applied to the Israeli context. philanthropic efforts. In doing so, it will work to bring about a step change in the way growth is pursued and measured. In “Inclusive Growth Drivers: The Anatomy of a Corporation,” the Morgan Stanley’s Institute for Sustainable Investing and This is not just good corporate citizenship; it is the future BSR (Business for Social Responsibility) explore four key areas of successful business. Companies benefit from inclusive where a corporation’s activities can impact inclusive growth:51 growth through a more educated and engaged workforce; a larger middle class of consumers with greater purchasing power; more stable operating environments; and a high level of trust from employees, customers and stakeholders.

The G7 Biarritz Summit gives impetus to this effort, Operations catalysing robust action in the private sector, and Management underlining the importance of strong public-private collaboration to address major economic and societal Human Products and 53 Resources Services challenges in G7 economies and beyond.”

Under the leadership of Emmanuel Faber, Firm Management Chairman and CEO, 34 international businesses including and Governancel Accenture, IKEA, Mars and Unilever have committed to promote Inclusive Growth through: Subsequently, the OECD announced that it was 1. Advancing human rights in direct operations and supply developing a Business for Inclusive Growth (B4IG) Platform chains; in partnership with Danone to unite businesses and 2. Building inclusive workplaces; and governments behind a common agenda for inclusive 3. Strengthening inclusion in company value chains and growth, and empower businesses that want to shift the business ecosystems. needle on inclusion.52 The Platform initially defined a number of areas to consider such as living wage, diversity The B4IG Platform efforts will advance along 3 pillars and inclusion, inclusion in supply chains, etc. Most through a three-year work programme to realise the recently, this initiative has been endorsed by the French ambitions on: Government as hosts of the 2019 G7 Summit of advanced, industrialised nations, and was formally launched as a 1) A pledge to fight inequalities. three-year programme, as part of the G7 Biarritz summit: 2) A project incubator, which will promote on-the-ground “The Business for Inclusive Growth (B4IG) Platform, a collaboration between businesses and with governments global initiative managed by the OECD, aims to pool and philanthropic actors, serving as a micro-economic lab

40 - Leaving No One Behind that can help inform the macro-economic policies of G7 about having a comprehensive plan, which minimises states and beyond. negative social, environmental and economic impacts, maximises positive impacts and covers all aspects of the 3) An inclusive growth financing forum, to survey existing business and extends into the supply-chain. Going All In private, philanthropic and public financing mechanisms means having a sustainable culture, which is innovative, for inclusive growth, assess how to build greater synergies, empowering and engaging, open and transparent, deploy new financing models such as output-based and with a core sense of ethics and responsibility. A financing and generate additional funding streams.” 54 business that goes All In, needs to have the skill and will to collaborate extensively with a range of business, civil Drawing on these and other sources, we are looking at the society and public sector partners. It will need to act as contribution of businesses in Israel to Inclusive Growth advocates, speaking out and up for social justice and under four pillars. Namely: sustainable development.

• Workplace & Work-readiness

• Marketplace: products, services & using the marketing channels of the business THE ALL IN LEADERSHIP FRAMEWORK

• Supply chains: Purchasing: extending and capacity- building suppliers

• Citizenship: through the example set through core PURPOSE activities and Collaboration & Advocacy for community- PLAN COLLABORATION ADVOCACY building and inclusion. CULTURE More broadly, however, we should not forget – as the OECD pointed out in 2018:

“Responsible business conduct is a lever that businesses FOUNDATION SCALE SYSTEM CHANGE can use to promote inclusive growth; for example, by Source: All In: The Future of Business Leadership (2018) raising compliance with laws on respect for human rights, environmental protection, labour relations and financial 55 accountability.” It might also be added: Corporate Tax We believe that businesses which go All In are likely to be Strategy, Executive compensation and pay ratios. more strategic and more successful for themselves and for society in their contribution to inclusive growth. Going All In In 2018, one of this publication’s authors (David Grayson) This is because a business with societal purpose will have co-authored another book: “All In: The future of business inclusive growth at the heart of who they are and what, leadership.” In that book, David Grayson, Chris Coulter and therefore, they do. Promoting diversity and inclusion will be Mark Lee argued that business can no longer be hesitant integral to this. This will be reflected in their plan (corporate or half-hearted about sustainability: it has to go all in. strategy). They will, for example, need to be more proactive in attracting, developing and retaining talent if they are to Going All In involves having a clear purpose, which is be responsible and not just poach talent all the time with authentic and inspiring, explains why the business exists higher pay. Their culture will be based on inclusive values and how it creates value for itself and for society. It is and behaviors because they take responsibility for their

Leaving No One Behind - 41 Chapter 4 | DEFINING THE CONTRIBUTION OF BUSINESSES PART ONE IN ISRAEL TO INCLUSIVE GROWTH impacts such as job losses from automation and treat employees and how to meet these; and how they are capacity building and other stakeholders ethically. In a sustainable culture, suppliers. employees are engaged and empowered – and today this means feeling part of the community and not being “left behind.” Culture: work to build a sustainable and inclusive culture by identifying blockages they have to achieving such a culture and Collaboration and advocacy are essential attributes of All In how these can be overcome. businesses and businesses that are successfully contributing to inclusive growth. Business leaders have to champion the role of Collaboration: specifying to their human resources/talent business in contributing to Inclusive Growth to their peers, their development teams, that part of management development suppliers, their trade associations and new entrepreneurs. and leadership training should include developing M.U.S.T- have partnership skills - as identified by the international NGO: The Adapting the All In Leadership Framework and applying it Partnering Initiative. (See diagram below)56 specifically to the challenge of Inclusive Growth, businesses that want to optimize their contribution to inclusive growth Advocacy: senior leadership of the business will be prepared over the long term will: to speak out and to speak up for social inclusion and sustainable development: for example, advocating that their Purpose – define their purpose: explaining how through their umbrella business organizations such as the Manufacturers’ existence, inclusive growth is improved. Association, the Bankers’Association, the Diamond Producers Association or the Employers’ Federation should also take a Plan - develop a comprehensive plan (corporate strategy) for lead on these issues; and encourage their business peers to sustainability and inclusion which covers all aspects of the join in and show them the practical ways of doing so. business and supply chain including future talent requirements

MUST-have partnering competencies

indset nderstanding Human / relationship echnical M Uother sectors s kills TPartnering knowledge Humility to realize others Values and culture Ability to look from others' understanding the partnering may have more appropriate Interests perspectives lifecycle knowledge / resources Motivations and drivers Networking and connecting Key principles and building Inclination to reach out to blocks of partnerships Resources and capabilities Approaching and engaging work with others potential partners / selling Best practice approaches to Willingness to give up Systems and processes ideas setup and governance autonomy of decisin- Capacity limitations Relationship / trust building Ability to assess critically making Legal Limitations Interest-based negotiation when and when not to (Measured) risk taking partner Facilitation Propensity for innovation The partnering black box of AND understanding of your Communication trust, equity, and power Ability to work for the own! benefit of the partnership Coaching / mentoring Partnership agreements as a whole Mediation / conflictresolution / Reviewing Partnership troubleshooting Exit strategies

42 - Leaving No One Behind WHAT IS GOOD PRACTICE IN TAKING A STRATEGIC APPROACH TO INCLUSIVE GROWTH? We believe that the businesses we have examined, have – to some degree at least – adopted what might be summarized as an A.C.T.I.O.N approach to Inclusive Growth:

Assess: companies begin by mapping S.W.A.N.S. (Society’s Wants and Needs from company) and O.W.A.N.S. A (Organization’s-Wants and Needs from Society). Typically, this might involve the elaboration of a Materiality Matrix. It is easier if the business has already committed to a positive societal purpose (see above). The 2011 social protests provided an additional trigger/prompt to become more strategic about identifying S.W.A.N.S. Further data was provided by the Eckstein I and II committee reports on what steps need to be taken to better integrate the Arab-Israeli and Ultra -Orthodox communities into mainstream employment; and periodic revisions to the strategy of JDC (JOINT). The business also needs to assess how it is already assisting with Inclusive Growth. The composite checklist in Chapter 9 below can help this assessment.

Commit: the board and senior management team commit to a selection of priorities for inclusive C growth with a business and societal rationale and in some instances setting of big hairy audacious goals: BHAGs. Again, the composite checklist in Chapter 9 below can help to define which commitments to make which will both help achieve the company’s overall strategy (which itself may need to be updated through this process) and contribute to more Inclusive Growth in Israel.

ATell: the business communicates what it is doing and why to internal and external stakeholders, to T secure buy-in and facilitate implementation. In the following chapters 5-8, we identify a number of company CEOs and chairs who have led their companies to pursue more Inclusive Growth. I Implementation: the business Identifies an implementation plan: including existing partnerships to join, potentiallyC utilize better and/or the identification of new partnerships to create.

Operate: the actual implementation of the programme for inclusive growth in the workplace, the TO supply chain, the market-place and through contributing to wider society. The latter will involve some combination of the 7Ps: Profits (cash contributions), Product (including services), Premises (hosting NGOs, giving them surplus buildings eg final period at the end of a long-lease), Promotion (using cause-related marketing to publicise a cause or social campaign), Partnership (mobilising / joining other business and Civil Society),I Power (lending the credibility of the firm, showing due diligence has been done on an NGO partner etc, making introductions to others, lobbying on behalf of the NGO/cause with municipalities, central government etc) and perhaps, most importantly, People (employee volunteering, sharing professional expertise, management skills etc). Overall, businesses can consider how to adopt more elements of the Inclusive Business checklist summarized in Chapter 9 below.

Nurture: develop partnerships with relevant NGOs with expertise and networks, draw out learning N from their activities and ensure that these are then disseminated inside the business and externally. In particular, this involves measuring impacts and using the process of measurement and reporting for continuous improvement. One company which has attempted to define the totality of its impacts in Israel is INTEL: see visualO from INTEL based on an independent evaluation by the Samuel Neaman Institute.57 N Leaving No One Behind - 43 Chapter 4 | DEFINING THE CONTRIBUTION OF BUSINESSES PART ONE IN ISRAEL TO INCLUSIVE GROWTH

THE ECONOMIC IMPACT OF INTEL ISRAEL

44 - Leaving No One Behind Distinctive Israeli business contribution to Inclusive Growth Whilst by no means unique to business in Israel, there are a • Technology: in common with business efforts to scale social number of distinctive features which also come together in a innovations in other parts of the world, Israeli companies are distinctive combination. frequently using technology to support social inclusion such as Unilever’s Shopo. (See Chapter 7) These distinctive features include: Again, to be clear, one of the distinctive and successful features • The trauma of the 2011 social protests – see Preface of Israeli Corporate Citizenship is the extreme improvisation • Leaving no one behind - a high sense of social solidarity see and experimentation that occurs, so our articulation of the chapter 3 A.C.T.I.O.N mnemonic is a distillation of practices rather more than describing a regularly applied process. • In terms of expectations of Israeli public from businesses: Social agenda is consistently ranked very high. In the following chapters, we examine in more detail, the different • Collaboration: an openness to work in multiple partnerships: ways that businesses in Israel are contributing to Inclusive Growth some ad-hoc like the social impact hack-a-thons (see below in the Workplace, Supply-chain, Marketplace and wider society Chapter 8); some more organized but short life such as 5x2 (the business-led initiative on improving students' performance in mathematics – see Chapter 8) and some long-standing partnerships like Maala itself and with respected NGOs like Tsofen and Co-Impact.

• Creative swiping of tools and techniques from the world of start-ups and high tech such as the social impact hack-a- thons sponsored by companies, Civil Society organizations and educational institutions, where teams of motivated, data-savvy entrepreneurs and technology-literate individuals compete to solve a social problem such as looking afresh at data or developing a mobile app. Other examples include social innovation incubators and accelerator programmes for social enterprises and the donation of share options to social causes from high-tech IPOs (Initial Public Offerings).

Leaving No One Behind - 45 FOUR PILLARS OF ISRAELI BUSINESSES PART TWO CONTRIBUTING TO INCLUSIVE GROWTH

CHAPTER 5 | CONTRIBUTING TO INCLUSIVE GROWTH IN THE WORKPLACE

INTRODUCTION A company's human resources, i.e. its employees, is recognized Indeed, the potential of contributing to more Inclusive by the Morgan Stanley Institute for Sustainable Investing as one Growth was recognised by Israeli corporate CEOs when of the four pillars of business contribution to inclusive growth: they met in Maala-hosted CEO round-tables after the "For most companies, the first step toward inclusive growth social protests in autumn 2011. As one noted then is jettisoning the notion that the least expensive workforce “make no mistake – the protestors are the employees is best for the bottom line. In fact, employee satisfaction—a themselves." Another observed: composite reflection of fair wages, job security, work- “The social unrest is closely connected to the changing life quality and more—has been shown to correlate with landscape of work – especially within younger employee improved corporate performance."58 generations. Their expectations are different."

As a Business in the Community Ireland report from early Another CEO argued: " businesses must look inward. Each and 2019 makes clear: every one of us knows what needs to change from within."

Another noted: “The social unrest relates to many issues. Companies “Employment offers the single cannot contribute to housing and health solutions. One " subject is extremely relevant: employment and contracted biggest opportunity for vulnerable employment. This is an issue that Maala members have individuals to move out of a cycle substantial contribution to and is vital."

of poverty and become active And yet another suggested: "we need to look differently on participants in society.”59 employees., tackle low wages and salary gaps between the lowest and highest paid." 60

In the mid-twentieth century, many companies cared for In Israel too, arguably the most significant impact that their employees' needs, as a sort of benefit granted for businesses have had to date" on inclusive growth is in being part of the enterprise, in a somewhat paternalistic the sphere of employment. This includes recruiting from approach. Today, companies are again caring for their marginalised communities, improving the work environment, employees’ needs, though the basis is a new approach of employment conditions, support and empowerment of low- investing in employees' social mobility. wage employees, benefits for employees, and more. While Israel is ranked among the best in the world in terms Many companies employ large numbers of people in entry- of overall social mobility,61 there are still a number of major level positions, who, with lack of skills and opportunities, issues to tackle in order to ensure inclusive growth for all. This will remain in their positions throughout their entire career. chapter will discuss three major issues regarding employees, In the majority of cases, social mobility of these low-paid with a great impact on inclusive growth in Israel: In-work employees is very limited or even non-existent. poverty, reskilling for future jobs and workforce inclusion.

46 - Leaving No One Behind In-work Poverty One of the most significant challenges to inclusive growth minimum wage, will pay for their employees and their is in-work poverty. Israel is ranked 31 out of 34 OECD families to go on vacation for a few days, realizing that countries in the category of 'working poor', with 14% of the otherwise those same low-paid employees will never go on working population living in poverty.62 vacation because they can't afford it. In addition, while companies are aware of in-work poverty, A growing number of companies globally recognize the impact the ones most affected by it cannot always allocate the of this issue on their employees' productivity and motivation funds required for increased minimum wage in order to at work.63 In Israel, several have decided to act on it on a match the actual living wage. Therefore, companies in Israel company-wide scale, offering an extensive and diverse package have found other creative ways to empower and develop of benefits for low-wage employees. One of the more common their low-paid employees. examples is an increased minimum wage: companies set an internal minimum wage that is higher than the minimum wage Data drawn from the 2019 Maala Index, which rated 160 defined by the state (38% of the companies rated on the Maala leading companies in the Israeli market on their ESG ESG Index pay an increased minimum wage). performance, provides a glimpse of how Israeli companies are supporting their employees, particularly low-paid However, the issue is not merely how high entry-level employees. salaries are, but rather what the low-paid employees can do with what they earn. For example, several companies, The following bullet points include data from the Maala including ones who have established an increased index on supporting low-wage employees.

Caring for Work-life employees health balance

of the rated companies offer the option provide information 82% offer basic periodical 56% of partial work 73% and maintain the medical checkups, from home. rights of caregivers. such as blood pressure, of rated companies weight, and more. offer a gradual offer the possibility return from 64% 75% of flexible working have gym facilities or parental leave. hours. 69% an agreement with a nearby gym which the provide and/or of companies offer employees can use. fund programmes the option of paid or 65% 87% encourage a healthy for employees' unpaid leave during diet by: providing quality children during the school holidays and healthy food in the summer vacation. university exam period. 75% workplace, vending machines with healthy Employee development plans snacks, workshops on 47% of rated companies have set promotion healthy diets, and more. tracks for low-paid employees.

Leaving No One Behind - 47 PART TWO Chapter 5 | CONTRIBUTING TO INCLUSIVE GROWTH IN THE WORKPLACE

Supporting employees offer the option of continuing to approaching retirement 79% work past retirement age.

of rated companies provide useful offer the option of gradual retirement, by: 82% information on all aspects of life in 45% reducing work hours, working part time, retirement working in shifts, and more.

Supporting low-wage employees

offer education of rated companies offer advisory scholarships for their offer loans from the 71% 62% services on savings 63% employees and their company at good rates, plans and pensions. family members for employees in need. (children and spouse).

provide social fund advanced manage a fund for 60% work services. 74% health insurance for 53% assisting employees all employees. in crisis situations.

give differential offer advice and of rated companies bonuses/pay raise/ guidance on personal have programmes for 76% benefits to low-wage 51% and household 31% empowerment and employees. finance management. developing personal skills.

Source: Maala / Tel Aviv Stock Exchange Index (2019)

We look at how Assuta Medical Centres, Strauss Group in the central and southern parts of Israel. About 13% of the and CBC (Central Bottling Company) are tackling in-work surgery in Israel is performed in Assuta establishments, and poverty and thereby promoting more inclusive growth. about 16,000 IVF treatments are performed, thus making Assuta’s IVF unit the largest of its type in the world.64

Assuta Medical Centres The main issues Assuta faces relating to inclusive growth Assuta Medical Centres is a private chain of medical are in hiring and in maintaining employees in entry-level centres owned by Maccabi, a healthcare services provider positions. While financial solutions are significant and in Israel. Assuta has four hospitals and three medical can make a change (e.g. raising minimum-wage salaries), centres with operating rooms and outpatient care, mainly Assuta chose a different approach. It collaborated with

48 - Leaving No One Behind JDC-Tevet through a programme developed by JDC termed Both these tracks, within the line of work and advancing 'Career Ladders'. The programme is aimed at developing from it, complement each other. If the company provides professional promotion opportunities for employees in tools and removes certain barriers such as language entry-level positions. The programme provides a dual barriers, financial abilities and low self-esteem, it is solution, both for employers in need of skilled workers, and expected that the workers will strengthen their social for employees lacking substantial promotion opportunities.65 resilience with the acquired skill-set, having a major effect on their quality of life, and it is believed that some, at least, The project at Assuta was done with auxiliary and sanitary will have the ability to also take the step and move on out personnel, who work alongside medical staff (nurses and of the organization to more senior jobs elsewhere.66 physicians). These workers enter the medical world with no training or background in the field. Key take-aways: When developing career ladders for auxiliary and sanitary workers, the intuitive thought is that they would want to In a very hierarchal organizational structure, as upskill and move to a less physically strenuous position, in a typical to medical service providers, the company cleaner and more organized environment. nonetheless managed to expand and open up additional career development opportunities At Assuta, quite surprisingly, they within the entry level category. discovered that the auxiliary A three-fold advantage: career development opportunities, investing in future nurses where and sanitary workers have great there is a shortage, and higher standard of patient professional pride. treatment.

Although they are in entry-level positions, they see their work with patients as a mission, filled with a sense of purpose and importance. In many cases, their reward is Challenge: as the fundamental job description the actual work itself in handling and helping the patients. for the majority didn’t change there is a need to The majority of these employees are happy to stay in their develop new ways to empower and maintain the novelty of line of work. the programme without increasing the work overload. In light of that, Assuta and JDC-Tevet developed two tracks as part of the career ladders project: Strauss Group 1. "The auxiliary workers today are the nurses of tomorrow" – One of the companies most consistent and dedicated to a track encouraging auxiliary and sanitary workers who want inclusive growth and its employees' social mobility is Strauss and can fulfil their potential to advance in the medical world. Group. Strauss is one of Israel's leading food manufacturers, with significant international operations as well. The group 2. The second track is within the line of work, with three portfolio includes four companies: Strauss , Strauss main sub-tracks: 1. Professional skilling - training the Israel, Strauss Water, and PepsiCo-Strauss Fresh Dips & workers to become mentors and developers of training Spreads - a partnership between the two corporations programmes within the field. 2. Life-Long Learning (LLL) including two companies: Sabra in North America, and Obela - Skills useful for the job and for life outside the job in Mexico and Australia and New Zeeland. The group also as well, e.g.: language (learning Hebrew), interpersonal has a long-lasting partnership with Danone (dairy products), communication, household finance and more. with Haier and Virgin (water purifying systems). The group 3. Computer skills. aims to lead in FoodTech and innovation for sustainability.

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As referenced in the Preface, Strauss was one of the • Strauss set up a fund of 27 million NIS, ($7.7million) companies most heavily targeted during the social upheaval offering education scholarships for employees' children. in 2011 in Israel. The demonstrations on the high cost of Any employee with children could apply for a scholarship. living were protesting, among others, against food prices in • Strauss also hired children of employees during their Israel. Ofra Strauss, chairperson of Strauss Group, and Gadi summer vacation in appropriate jobs, so they could earn a Lesin, then CEO of Strauss group, engaged with company little money of their own. employees at the time to hear their opinions on the protests. They heard that Strauss employees did not purchase • To answer the issue that employees could not afford to company products because they could not afford them; buy company products at home, products that are regularly available to them at work. Ofra and Gadi were shaken to the core by the realization that the Strauss set up a small store protestors could be company employees; it's one thing to get attacked from outside the company, but to hear that the that would be accessible to issues of high prices were also internal with the company's the employees at their place of employees was very disturbing. Strauss employs over 4,500 employees in Israel, of which around 3,000 were low-paid work. The store offers Strauss workers, meaning that the issue encompassed a very large products, and the company proportion of the company's employees. subsidized 40% of the costs.

• Salary resources have been diverted to junior and middle-level management levels to reduce earning gaps within the company. • Day care is subsidized in Israel only from the age of three, meaning that until children reach that age, parents need to figure out private arrangements for their children. Whether it's paying for private day care or staying at home with the children, it comes at high cost to the parents. Strauss The company decided to act immediately and began to decided to grant employees with children under age three develop a company-wide social plan, with the goal of 500 NIS ($150) per month to help cover their expenses on enabling its employees to live decently and to improve their private day care. quality of life. The social plan took place after allocating • One of the first steps taken was paying for employees resources that now support the company's production and their families to go on vacation, realizing that floor employees. otherwise, the majority of the low-paid employees would never go on vacation because they can't afford it. Over the past 8 years since the protests, the social plan • Strauss provides its employees with a long-term savings has expanded and developed: plan (in Hebrew: Keren Hishtalmut). Each month the • Strauss pays its low-wage workers a minimum wage that employee sets aside a small percentage of his or her salary is higher than the one defined by the state (an extra of (around 2.5%), and the employer adds another 6-7.5% as about 100$ per month). well. The money is not available for use for six years, and

50 - Leaving No One Behind from the seventh year onwards the employee can decide also launched a programme called Strauss Magic, which whether to use the money or continue saving it. In either functions as a sort of community within the company. case, the employee and employer continue to set money As part of the programme, stronger and more resilient aside every month.67 employees meet with employees facing challenges. These workplace peers could assist with issues they need help Besides all those actions, Strauss looked at the broader with, or simply engage in conversation. The company picture of poverty, and how, as a company, it can help its has found that this programme has had a very positive employees save money. Strauss offered its employees impact on the participating employees and increases loans with very low interest rates, and the loans could be internal engagement in the company. Strauss believes that used by the employees for whatever they needed. Some employability is also about small issues relating to every- 500 loans were given in the first year, at a total sum of day life. six million NIS. ($1.7million) To complement the financial assistance, Strauss collaborated with an NGO called Orit Halamish, Director of Organizational Development at Pa'amonim, which specializes in financial education and Strauss, shared her experience in the programme: how to manage a family budget. With Pa'amonim, Strauss offered its employees financial advice, aiming to give them "I volunteered with one of the employees. We met every tools for responsible financial management.68 week for one or two hours. It could be to go with her to the (www.paamonim.org/en/) bank if she didn’t know how to do it herself, and it could be just to talk. I think the moment that was most powerful for The second aspect that Strauss focused on in addition to me, was when I mentioned something about when she is the financial one is health and medical insurance. Every eating dinner with her children, and she told me 'we don't citizen in Israel receives basic health insurance from the eat together in the evening'. They don’t have a shared state, and many if not most people add private insurance meal together. She has a child four years old that still eats in addition.69 In reality, the basic insurance provided by the baby formula. So I told her it's not normal for a four-year state does not allow sufficient healthcare and in many cases old to eat formula. She didn’t even think that she has to entails long waiting lists for treatment. Working poor usually do something about it. And these are not just people can't afford private insurance and are at a disadvantage in somewhere, they're right here with us. This woman has big terms of healthcare accessibility. To overcome that, Strauss issues to deal with besides this. But also small issues like offers all its employees a higher level of insurance in order to these are significant, and it didn't even occur to her to talk allow them better access to healthcare. about them. If I had a problem with my children, I would know what to do and where to go to get help." In addition, Strauss set up a fund to aid employees with special healthcare expenses. If employees are in Strauss has set a goal for 2024 to be a trustworthy need of treatment that is not covered by the insurance, organization for all its stakeholders, including employees. they can apply for aid from the company. This fund is Strauss's engagement with its employees is based offered in addition to the higher health insurance that not purely on reducing poverty, but on creating and Strauss provides its employees. One such case was of an maintaining a relationship based on trust. Transparency employee who needed to purchase a hearing aid for his and consistency are important elements to succeed in daughter at a high cost, and the company granted him the that. In order to ensure the long-term nature of the social funds for that. plan, Strauss recently made sure that the plan cannot be dismissed or cancelled for at least ten years. Strauss also offers its employees mental health advice and employs a social worker in each of its factories. In addition, in order to increase trust, Strauss decided Some 300 employees use this service each year. Strauss to standardize its employment terms and conditions.

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For example, the company is currently working on Strauss Group developed a holistic, overall approach standardizing its work environment in terms of safety and to sustainability and inclusive growth, and its social plan working conditions, and it has already invested greatly in demonstrates that through its efforts on social mobility and upgrading its safety programmes. In terms of employment, inclusive growth of its employees. Strauss has decided to admit contract workers as company employees after just one month of work. Key take-aways:

All of Strauss's efforts are backed by management, and indeed they all carry a strong business case. For example, Strauss offers a comprehensive and creative the contract workers posed a serious problem because approach that manages to do the most with there are many cases where a new worker shows up, but limited funds; differentiating between low and high then disappears after a short while and a new worker paid jobs, increasing support according to family is sent instead. This requires Strauss to train each of life stages and encouraging long-term savings. these short-term workers and it creates confusion as the There is a combined effort to train and upskill managers have trouble remembering the names of each entry level employees with working goals to recruit contract worker and what days they are meant to work. It internally. is, therefore, deemed to be much better for the company to add the contract workers to the company's workforce, thus incentivizing them to stay for a longer period. Challenge: Strauss is showing impressive progress with the employee social programme. Given the Another programme Strauss initiated was with its sales number of employees at entry jobs they will need to find representatives in supermarkets, who are low-paid ways to scale up. employees. These representatives' work and salary are based on demand – how much the stores will buy from them. This means that at the beginning of each month Central Bottling Company (Coca Cola Israel) those employees didn't actually know how much they The Central Bottling Company (CBC) is the authorized were going to earn. This caused increased stress and manufacturer of the Coca Cola Company in Israel. The a sense of uncertainty relating to their work. Strauss company was established in Israel in 1968, and today decided to consider them as full-time workers and thus includes several brands and products, including Coca Cola ensure them a steady salary each month. Obviously, brands, Tara dairy products, Tabor wine, Carlsberg beer, these employees can choose to work less than full-time, Neviot mineral water, Prigat drinks, and several other brands. but that still gives them the assurance of knowing how much they are going to work and, therefore, be paid, in CBC employs around 4,700 people. Its main manufacturing the beginning if the month. Strauss also initiated a steady site and headquarters are located in the city of Bnei Brak. rise in salaries, thus ensuring a degree of differentiation between new employees in entry-level positions and CBC implements various practices aimed at tackling more experienced veteran employees. The steady rise in-work poverty of low-wage employees. For example, in salary also ensures that an employee won't be 'stuck' CBC works with an organization in the field of household with the same salary for several years but rather see a economics to support employees through difficult financial constant rise. hardships, helping them reach financial liberty and improve

52 - Leaving No One Behind their quality of life. The company offers its employees who was divorced with three little children, and had her financial education for responsible household economic electricity cut off due to an unpaid debt to the electricity conduct, as well as guidance and consultation throughout company. The financial aid could come in various shapes the process. The program includes a holistic approach, and forms, such as: purchasing medical devices and looking into various aspects of family life, such as children's examinations that are not covered by the national health schooling and education, living conditions and quality of insurance, providing legal counselling for employees facing life. Over 80 families of employees successfully completed bankruptcy, and more. the process over the course of nine months, transforming their household economics and eventually reaching a An additional benefit that CBC offers is scholarships for positive balance in their accounts. The programme also employees and children of employees who want to get a aims to provide the participants with tools that will help higher education but cannot afford to pay tuition. them avoid getting into dire situations in the future. Corporate welfare departments, in most cases, are in charge of recreational activities, such as field trips and As part of the holistic approach, CBC also offers parenting celebrations. Throughout Israel's first few decades, the counselling for employees who have trouble with their strong socialist orientation of the state meant it was quite children. Such counselling could be quite expensive, and common for companies to employ social workers and CBC offers six meetings entirely covered by the company. provide a variety of social services for the employees. Towards the end of the last century, several companies cut Low wage workers at CBC can also receive food packages back on such services as they felt there was less of a need to supplement their monthly food supply. The packages for them. Today, a growing number of companies, such are valued at 500 NIS per month, which constitutes a as CBC, are choosing to reinstate the position and offer significant portion of a family's monthly food shopping. employees a variety of social benefits and assistance. Employees receive this aid for up to six months, and there are currently 110 employees receiving this aid. Key take-aways: CBC also offers a "back to school" package, supplying children of employees with school supplies and books. Reducing in-work poverty among employees as Over 350 children a year have received this package in the a company goal by extensive welfare programmes past couple of years. and in-kind support.

Proactive work of the welfare team in a way CBC also assists employees living in poor conditions, funding that aims to tackle problems at their roots, and renovations that the employees could otherwise not afford. contribute to social mobility of employees and Around five employees receive this aid each year. Employees their families. experiencing difficult or complex life situations are regularly visited by the company's welfare team, receiving support and help when needed. In one case, the welfare team visited an employee in grief over his son who passed away Challenge: The heavy investment per employee from cancer at age 18, and found that the employee was is hard to maintain and scale up over a long time, living in very poor conditions. The issue received immediate as well as measuring the impact in terms of social mobility attention and the employee's house was renovated, with all when the household income is equal to or below current costs covered by the company. average family expenses.

The company also provides financial aid for employees in crisis events, as illustrated by one example of an employee

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RESKILLING FOR FUTURE JOBS

Bank Leumi Bank Leumi was established in 1902 and is the oldest active Employees receive training and are then reassigned within bank in Israel. Today, it is considered as one of the two largest the bank. This offers great value for both the employees banks in Israel, holding an approximate 30% market share. and the company. The benefit for the company is Leumi operates through more than 200 branches across Israel twofold: 1. the bank's ability to change and to enhance its and has an international presence in the USA, the UK and organizational flexibility. 2. Maintaining devoted employees Shanghai. The Leumi Group has about 10,000 employees in who are familiar with the bank and have experience in Israel and abroad. the banking field, while reducing the need to recruit new employees with less experience and loyalty to the bank. Bank Leumi has recently developed a unique re-skilling programme for experienced employees named "SHIFT". Naturally, there are employees who may choose to take Acknowledging the current and expected trends and their newly acquired skill-set and move elsewhere, but changes in the world of human resources, especially in the that is nonetheless seen as a success in terms of the financial and banking sectors, Bank Leumi understands the programme. Bank Leumi sees the value of its human importance of preparing for these changes. Therefore, the capital, whether it stays with the bank or leaves. Leumi HR department at Leumi, alongside senior management, believes that part of its responsibility as an employer decided to create a unit within the bank devoted to this issue. includes preparing its employees for the future of work The unit's work focuses on researching and understanding both within and outside of the bank, rather than lay them how the work environment will change in the upcoming off because of the changing patterns of work. It views its years, which jobs will be most relevant in the future, and how employees as ambassadors of the bank, even when they the bank should best prepare and adapt to these changes. choose to work elsewhere.70 . Of the 9,000 employees at the bank in Israel, roughly 70% have tenure, meaning that most of their professional career Key take-aways: will be with Bank Leumi. On the one-hand, the employees enjoy stability and job security at the bank. On the other A creative and proactive approach to prepare hand, job tenure could prove a barrier to leaving the bank for the changes in skills and jobs within an existing and professionally developing elsewhere. The bank aims workforce. (many of them have tenure). to maintain its employees, but also to re-skill them for new The changing landscape of work touches positions within the company. upon all levels of employees as this case study exemplifies. For this purpose Bank Leumi recently established a school for the future of work within the bank, with the goal of training and re-skilling the employees during their time at the bank. Some of the jobs that have already been Challenge: the disruptive changes in the banking recognized include analysts, digital products development sector pose a major challenge in terms of job and management, jobs related to cyber security and cloud security in a sector that was once considered a secure one. storage systems.

54 - Leaving No One Behind INCLUSION IN THE WORKFORCE PEOPLE WITH DISABILITIES Alongside in-work poverty and reskilling for future jobs, the First, we consider examples of companies proactively other most significant issue regarding employees is the enhancing opportunities for people with disabilities. inclusion of minorities and marginalized populations in the workforce. Israeli society consists of several population Harel Insurance Investments & Financial groups and communities, as discussed in chapter 2. The Services largest minorities and marginalized populations are people Harel is one of the largest insurance and financial services with disabilities, Arab Israelis and Ultra-Orthodox Jews. These providers in Israel. It offers various kinds of insurance, groups are severely underrepresented in the Israeli workforce: including health insurance, travel insurance, life insurance, car insurance, and more. It also provides several financial services • People with disabilities constitute around 17% of the such as pension funds, savings funds, investment portfolio Israeli population71 though the figure used to identify those management, mutual funds, Exchange Traded Funds (ETFs) who would need adjustments in the workforce is 4.3%.72 and more. Furthermore, only 51% of employment-aged people with disabilities are working.73 Harel began as a small insurance agency in pre-state Israel • Arab Israelis constitute around 21% of the Israeli population. in 1935 and was established as an insurance and finance In 2018, 74% of Arab men of working age were employed, company in 1975. Today, Harel employs over 4,500 employees compared with 83% of Jewish men; only 32% of Arab women in Israel, of which around 2% are people with disabilities.76 of working age were employed in 2016, compared with 81% among Jewish women.74 Employing people with Asperger's syndrome Harel has been employing people with Asperger's • Ultra-Orthodox Jews constitute around 12% of the Israeli syndrome for over a decade, through a joint effort with population. In 2017, 51% of Haredi men aged 25-64 were AQA, an organization for the integration of people with employed, compared with 88% of other Jewish men; 73% of autism in companies with software testing positions. Harel women aged 25-64 were employed, compared with 82% of was the first company in Israel to collaborate with AQA and other Jewish women.75 regularly employ a number of people with Asperger's who graduated AQA's programme. Ten employees with Asperger's were recruited in the initial project for digital archival work. These employees received equal benefits and salaries as all other employees at Harel and were well integrated in the company. (During the project two of the employees were married.) Following the success of the project, Harel decided to continue employing six of the ten employees in different departments. In order to ease their employment process, a system for support and assistance was set up and included help with personal issues as well.

Employment of people with disabilities through Call Yachol In addition to employing people with Asperger's syndrome, Harel also collaborates with Call Yachol, a company which Ampersand, a shared workspace in the city of Bnei Brak specializes in setting up outsourced call centres staffed mainly promoting inclusion of Ultra-Orthodox Jews in the workforce. 77 Visited during a Maala conference tour, 2018. Photo by by people with disabilities. The company was founded Netanel Tobias with a vision to revolutionize the employment of people with disabilities in Israel. callyachol.co.il/eng/content-1

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As of 2016, the company employs over 200 people with Aroma Espresso Bar physical, emotional, and sensory disabilities, making it the Aroma is an Israeli chain brand of cafes. Established in 1994 biggest employer of people with disabilities in the Israeli in Jerusalem, Aroma today has over 150 branches and 3,000 market. Call Yachol employees see their work in services as a employees spread across Israel. Aroma also has over 50 career and a way of life, which in turn translates into dedication branches in Canada, the US, the Ukraine, and Kazakhstan. and devotion to their job and the company. Management Aroma operates through franchises, meaning the company positions also include several people with disabilities.78 itself does not actually own the branches, though it sets the Harel began to collaborate with Call Yachol over 4 years ago, standards that the franchisees need to comply with. with 15 employees that operated outgoing call service to Harel customers on various issues. Today, Call Yachol has 45 From the very beginning, Aroma made an effort to maintain employees providing call services for Harel, both incoming an inclusive workforce, recruiting people with disabilities. and outgoing calls. Harel is Call Yachol's largest customer, Over 20 years ago, the founder was approached by Elwyn – and employees and managers from both companies have an NGO helping people with disabilities better integrate into developed significant relationships beyond work relations. society. They offered him an employee with disabilities, and he agreed to give it a try. In fact, that led to the formation Harel employees and managers regularly meet and visit Call of an official policy that employees with disabilities are not Yachol, invite them to company events and award them for placed in the back kitchen away from sight, but rather in the their services. When Call Yachol's digital team, which deals with front, in contact with customers, regardless of how visible or customer inquiries, won Harel's service award, Harel managers noticeable their disability is. That very first employee with a listened to call recordings for each employee and awarded disability still works at Aroma 22 years later. them with certificates that had quotes from customers' positive feedback of the service. The relations between Harel Noam Gedalyahu, Aroma’s head of CSR grew up with the and Call Yachol enable Call Yachol's employees, many of which founder of the company, Yariv Shefa and they were close have severe disabilities, to not only be productive and to earn a friends from the age of 6 years old. Shefa's father even living, but also to stand out and excel at their work. taught Gedalyahu how to swim. Knowing Shefa, Gedalyahu told us that the commitment to employing people with Key take-aways: disabilities comes from the founder’s values: “he is a good person, he believes in giving people a chance. He wants to A case study that shows how a business help overcome prejudice.” 79 imperative becomes an opportunity for people with disabilities and even an advantage when it When it comes to food, customers can be sensitive comes to job qualification. about the service, and employing people with disabilities was viewed as a highly sensitive issue when it began in The success here is the matching of the two: Aroma. It turned out to be a successful initiative and was need and offering. duplicated in the first five branches that grew out of the first one. In the year 2,000 Aroma decided not to expand with more branches but rather adopt the franchise model, Challenge: there is an ongoing debate on whether as mentioned above. Aroma finds it difficult to demand to build a designated workplace for people with and compel the franchises, and prefers to use voluntary disabilities versus integrating them into the general workforce. mechanism to encourage the franchises to follow its

56 - Leaving No One Behind policy on employing people with disabilities. It explains the company does not widely publicize its work on inclusion, importance of the issue and the business case – employees rather it simply spreads via 150,000 daily customers. It has with disabilities tend to stay long term much more than non- become a part of the Aroma experience. disabled employees – and tries to convince them to adopt and implement the policy. Part of the process of becoming Upon receiving requests from the franchisees, the Ministry an Aroma franchisee is a period of training and working in a of Economy in Israel offers to subsidize up to 30% of the different Aroma branch, taking part in the regular work. This salary of employees with disabilities for three years. allows Aroma to get a sense of whether the candidate is fit to open a franchise of Aroma. In addition, it gives the franchisee The lesson to learn from the a sense of the hard work required and exposes him or her to case of Aroma is to look at the diverse workforce. This is a significant measure in getting the franchisees to employ people with disabilities. the abilities and not just the disabilities of each employee. In addition to training, franchise owners participate in gatherings of Aroma franchise owners. The issue of That enables the employer to hire people with disabilities in employing people with disabilities is emphasized during positions that match with their abilities, and to benefit from those meetings, including personally by the founder and having loyal, long-term employees. by the CEO. One of the challenges is constantly maintaining Aroma has other work besides employment that promotes the notion of the importance of employing people with the inclusion of people with disabilities in society. For disabilities. Aroma also conducts quarterly surveys which, example: making all the branches accessible, both in terms among other things, checks the number and percentage of physical access and accessible services. Aroma hosts of employees with disabilities. Despite the company's periodic meetups in the branches for people learning to significant efforts, not all 150 franchises employ people speak sign-language. The company promotes NGOs serving with disabilities. Currently, there are around 160-180 people people with disabilities, on screens in every branch whilst with disabilities employed in Aroma branches, roughly 5% customers are waiting in line. The franchise owners are also of Aroma's total workforce internationally – higher in Israel required to instruct their employees on providing adequate itself. It is evident that the founder's spirit has had a great service for customers with disabilities. Aroma prepared a 15 impact on the company and the Aroma brand is identified minute video explaining this, and employees are expected to with employment of people with disabilities. be instructed every three months on disability-awareness.

Aroma started by employing people with cognitive Key take-aways: disabilities, and after a few years expanded to emotional disabilities, as well as physical disabilities such as hearing One of the leading examples of a personal vision and eyesight disabilities. Aroma connects NGOs promoting implemented and sustained through the evident employment of people with disabilities with the franchises success and peoples ownership of the issue.. to smooth the process of recruiting those employees. A strong evidence of the advantage of With over 150,000 customers going through Aroma integrating people with disabilities in the branches every day, Aroma has an impact on its customers community even in the hospitality sector. as well. Indeed, the feedback that the company has been getting from its customers has been generally positive, with relatively few negative comments. Aroma has conducted Challenge: there are some success stories of customer surveys and found that customers recognize promoting those employees beyond entry jobs and Aroma as an employer of people with disabilities. The the challenge is how to leverage even further.

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INCREASING EMPLOYMENT OF ARAB ISRAELIS These change processes are supported by the wide and Large gaps exist between the Arab Israeli minority and Jewish strong partnerships which Co-Impact has with relevant parties. Israeli majority in terms of, fields of occupation, income and These organisations are themselves simultaneously going the percentage of Arab women in the workforce. Furthermore, through learning processes regarding the needs of employers a large portion of Arab Israelis live in areas considered the and the Israeli labour market. They are then working to develop geographical periphery, posing further challenges to their creative tools and solutions for the barriers and challenges, to integration. Increasing the participation and representation help the employers achieve a breakthrough.81 of Arab Israelis in the national workforce can contribute to Co-Impact piloted their project with a number of businesses, increasing growth of the Israeli economy. It can also help and today have expanded to work with over 60 employers achieve inclusive growth by improving the economic situation in Israel. This sub-chapter will include case studies from and state of employment within the Arab society in Israel. companies who have implemented the Co-Impact model, We profile the Co-Impact initiative and the cases of Tnuva, alongside additional cases of companies with extensive efforts Osem-Nestle, SodaStream and the Dan Hotels. for the inclusion of Arab Israelis.

It is worth noting the NGO Tsofen (www.Tsofen.org) which Co-Impact Initiative since 2008 has been helping Arab Israeli high tech students One of the various initiatives and programmes for integrating (computer sciences, engineering, mathematics) into Arab Israelis in the national workforce particularly worth employment. mentioning is the Co-Impact (Collective Impact) programme. Founded in 2013, Co-Impact has set its goal to "create a Intel and Microsoft are amongst technology companies who breakthrough in the employment of the Arab population in have been proactive in recruiting and integrating Arab Israelis suitable positions, by changing attitudes and activity patterns into their workforces, in collaboration with Tsofen. among the employers." 80 The initiative seeks to achieve this through cross-sectoral and inter-sectoral collaboration between employers, government institutions, civil society and Tnuva NGOs, and Arab communities, to create a synchronized effort Tnuva is one of Israel's oldest food companies, established towards achieving a common goal. in 1926 through a cooperative initiative of several Moshavim Co-Impact focuses on providing services to companies that and Kibbutzim (small, pioneering Jewish settlements in will enable them to go through the process of internal change pre-state Israel). Today Tnuva is one of Israel's leading food required to significantly increase the number of Arab Israeli manufacturers, with over a dozen brands, and employing employees. These change processes come through: around 6,500 employees.

• in-depth work on internalizing the business opportunity in Tnuva is associated with a sense of home, family and employing Arab Israelis 'Israeliness', and its products are perceived as basic products • companies taking responsibility for the process of internal in every household. Indeed, its most widely-recognized icon change is that of a house. For this reason, among others, the 2011 social protest in Israel targeted Tnuva and its products, and • setting goals and effective concrete work plans its cottage cheese brand became the symbol of the protest, • and helping companies to deal successfully with the hence the nickname of "the cottage cheese protest." 82 (See technical and perceptual barriers. above: Preface page 12).

58 - Leaving No One Behind Tnuva has expanded its work on diversity in the past few or customised training, the candidates are exposed to the years and joined the Co-Impact initiative in 2015. Tnuva's CEO work in dairy factories, and upon completing the training they met with representatives from Co-Impact, and together they are employed as technicians and machine operators in the devised a plan for increasing employment of Arab Israelis. The factories. plan was approved by the board, and a dedicated steering committee was set up for the initiative, convening three times The case of the company's southern logistics centre, located a year to review progress and approve objectives and business in the city of Netivot, illustrates the business potential of a plans regarding employment of Arab Israelis. diverse and inclusive workforce. The centre employs several workers from the Bedouin population living in the southern All "agents of change" in the company – i.e. HR managers, areas of Israel. With the help of the updated recruitment recruitment directors and site managers – participated in process, the logistics centre was able to recruit many Arab workshops and sessions about removing barriers and biases, and Bedouin employees. Their recruitment led to a significant and about multicultural management. improvement in the productivity of the logistics centre and was an immediate contributor to the improvement in the business Screening and recruitment processes were adapted to results of the unit. cater to the Arab population. Tnuva expanded its sources for recruitment to NGOs, popular websites in the Arab Israeli Tnuva's efforts stretch beyond just blue-collar positions and society, social media, and job advertising in Arabic media focus also on recruiting managers from the Arab population outlets. These efforts proved successful, as many Arab for white-collar positions. The company is also investing efforts candidates applied for jobs with Tnuva. Co-Impact guides and resources in programmes for promoting Arab employees and accompanies the recruitment process, and prepares within the company. the candidates for the interviews in order to increase their chances of getting a job. Diversity and inclusion of Arab Israelis is an integral part of Tnuva's business strategy and culture. With the guidance of Co-Impact, a peer group of Arab employees at Tnuva was created in 2017, aiming to asses and The significance of a diverse and promote Tnuva's operations in the Arab society, in terms of inclusive workforce is trickling employment, marketing and sales. The group convenes six times a year, and also participated in a round-table discussion down and spreading through the on recruitment of Arab Israelis. Some of their insight is already whole enterprise. With a better being implemented in the company. understanding of the culture, The breakthrough that Tnuva achieved in the recruitment needs and motivation of Arab process, led to a meetup with 40 Arab graduates from the Technion Institute engineering department. The aim was to employees, company managers recruit engineers for Tnuva's dairy factories. The high number are realizing and understanding of applications received, showed what a significant opportunity the added value of focusing efforts this was for young Arab engineers with little professional experience, and two engineers have already been recruited. on employment of Arab Israelis.

Tnuva also collaborated with the Starter programme (a joint Out of the total number of Tnuva employees 20% are Arab initiative of the Israeli Ministry of Economy and JDC Israel), Israelis compared to only 12% in 2015. Arab Israelis represent to provide training for job candidates from the Arab sector 8% of what Tnuva defines as quality positions vs 6.5% in 2015 with no professional experience. During this pre-recruitment Out of the new recruits in 2018, 24% are Arab Israelis.

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Arab minority in the Israeli society (20%). Osem has set a Key take-aways: goal to not only recruit Arabs for entry-level positions, but include them in managerial positions as well. A message from the top – translated to a set of internal mechanisms that systematically create the Osem's employment initiative for Arab Israelis was born change. out of a need for more employees, due to a high turnover Overall commitment to diversity with a strong of blue-collar workers. It found that it had become more emphasis on Arab Israelis which highlights the fact difficult to find employees to fill those positions, and Osem that each diverse community requires a specific understood that it needed to open its ranks to other specialty. segments of society in order to fill the required positions.

Including a large number of people from a specific community in the company's workforce requires several Challenge: to keep the momentum going, especially adjustments and adaptations of the work environment, around quality positions, beyond the time frame of as well as the recruitment and employment processes. In a designated programme in a company that has numerous collaboration with Co-Impact, Osem devised a three-year and veteran employees with additional priorities. programme with several components, including:

• In order to avoid bias in the regular recruitment process, Osem-Nestle Israel the company works with an organizational psychologist Osem-Nestle is one of the largest food manufacturers in from the Arab community. If a candidate fails to pass the Israel. Osem was established in pre-state Israel in 1942, process, although their resume and personal interview by seven small pasta and noodle manufacturers who were impressive, the company requests an additional joined forces in marketing. One of the founders was opinion from the psychologist to ensure that the candidate Eugen Propper, a Czech immigrant whose son Dan is the did not fail due to an unconscious bias built into the current chairman of the company. In 1995 Osem signed recruitment process such as in the group dynamic an agreement with Nestle, the Swiss-based multinational assignments. food company, and became its strategic partner in Israel. • The company dedicated an HR position to recruiting Arab Over the years Nestle acquired shares and increased its Israelis, and it periodically consults with a large network of holdings in Osem, until 2016 when Nestle completed the managers and leaders from the Arab community to come acquisition of Osem and became the sole shareholder up with further ideas and solutions for increasing Arab of the company.83 Osem has over 4,000 employees, with employment. eight factories across Israel. • Osem arranges a two-week session preparing new Diversity has become part of Osem's core strategy. The employees from different cultures for the work and company believes that it will thrive if it better represents all enabling a smother start in the company. parts of the Israeli society. Like Tnuva, Osem was also one • The company conducts training sessions for all levels of the pilot companies working with Co-Impact on inclusion of management to raise awareness and to prepare them of Arab Israelis. Osem chose to focus on the Arab Israeli for managing the new employees. The training includes community, considering the size and proportion of the workshops on conscious and sub-conscious biases.

60 - Leaving No One Behind • Osem adjusted the company holiday schedule to fit all Arab Israelis in management positions Osem also had a populations in its workforce, and company benefits as well breakthrough with the Bedouin communities in southern were adjusted with respect to each community. Israel, as it successfully recruited Bedouin employees into its manufacturing sites in the area. • A peer group of Arab employees was created, with the goal of advising and assisting with developing new solutions In recognition of the advanced work that Osem-Nestle is and ideas for the recruitment of employees from the Arab doing on diversity, the company won the Israeli Diversity community and also for retaining those employees. Award in 2017 for their efforts and achievements in • Osem raises awareness to the issue of diversity in including Arab Israelis in its workforce. its internal communication to employees, including newsletters and messages from the CEO.

• Job advertisements include reference to the company's Key take-aways: stand on diversity. The aim of this is to encourage A good case study of the potential of working candidates from the Arab community, who would usually with NGOs with an expertise in the field and not apply for such jobs, to submit an application. allowing them to bring an outsider’s perspective to internal working mechanisms. In addition to Co-Impact, Osem collaborates with other organizations to promote employment of Arab Israelis. Concentrating all efforts on a specific group Examples include: Kav Mashve – a non-profit organization contributes to good performance and is justified promoting equal employment opportunities for Arab by the traditional high number of Arab Israelis university graduates within the Israeli business sector; among Israeli food producers. Al’Fanar – a non-profit organization promoting employment of Arab Israelis. Al’Fanar (“Lighthouse” in Arabic) is delivering a three-way partnership between JDC-Israel, the Israeli Challenge: food producers have an overall government (Ministry of Economy and the Prime Minister’s challenge for creating more career advancement Office) and Yad Hanadiv Rothschild Foundation, to establish opportunities for a large number of employees who are in One-Stop Employment Centres in 21 Arab localities entry level positions and this is especially applicable to Arab throughout the country.84 Israeli employees. Osem also run interview days and workshops at "Riyan" community centres around the country, centres that promote women's employment from the Arab community. SodaStream SodaStream is an Israeli-based company, best known Osem's diversity efforts with Arab Israelis have proven for its home carbonation machines for making sparkling successful. water. It was originally founded in 1903 in the UK and was acquired in 1998 by the Israeli company Soda-Club, though The percentage of Arab maintaining the name SodaStream. In 2007 the company employees rose from 6.9% in 2014 was acquired by the private equity fund Fortissimo Capital, to around 19% in 2019.85 which appointed Daniel Birnbaum as CEO. Under his leadership, the company relaunched itself, branding its In addition, several Arab employees have been promoted products as environmentally friendly. SodaStream went based on their skills and abilities to key and senior positions public on NASDAQ in 2010 and until recently was also within the company.- there are currently about 11% of traded on the Tel Aviv Stock Exchange (TASE). In 2018 it was acquired by PepsiCo for $3.2 billion.

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The company has over 3,000 employees globally. Its communities mostly lack formal education and/or skills, products are available in 45 countries, and approximately are not well-integrated in the Israeli society, and keep to 97% of its profits are from sales outside Israel. SodaStream's a traditional way of life. Although these characteristics reusable bottle can replace up to 3,000 single-use bottles, continuously need to be dealt with, i.e. the company has thus contributing significantly to the environment. The to maintain an ongoing communication with the heads company also set social sustainability as part of its core of different families and clans, the new plant was a game business, with a diverse workforce from various ethnic, changer in terms of employment in the local community. religious, and socio-economic backgrounds, including Bedouins, Palestinians, and Israelis.86 Following the move to Rahat, Palestinians employed at the previous plant did not have permits to enter and work in the SodaStream is regarded as one of the exemplars in Israel state of Israel. The company felt obligated to those veteran of really reaching out to and employing some of the most employees, and, over a period of 14 months, worked through marginalized communities in Israel. The inspiration came several channels in order to get work permits for them. from the former CEO and now chairman Daniel Birnbaum, The company finally succeeded, and after a short while as he believes in the impact of businesses like SodaStream also got permission for these employees to stay in Israel to bring people together and create peace in the world. The during the week so as to spare them the hours of travel company won the Dov Lautman Diversity award in 2018. between their homes and the factory. The company rents apartments for them in the city of Beer Sheba and covers the expenses. The return of the Palestinian employees was marked by an emotional ceremony, and management feels that this commitment builds the trust and confidence that employees have in their employer.

SodaStream communicates the success of its efforts on diversity on every product it manufactures in Israel. Products are stamped by an emblem with an Israeli flag, saying Then CEO Daniel Birnbaum celebrating with SodaStream "Made in Israel: This product is employees after being awarded the 2018 Dov Lautman Diversity Award. Photo by: Sharone Amit produced by Jews and Arabs

SodaStream has been proactive in recruiting Arabs, working side-by-side in peace and Palestinians and Bedouins since 2007. In 2014, the company harmony".87 moved its production site from the Mishor Adumim industrial park, located in the West Bank near Jerusalem, to the The company takes pride in its achievements in diversity, and southern city of Rahat, a poor Bedouin town with very little invites people from all over the world to learn about their industry back then. The move assured a larger production work. A visitors’ centre has been set up at the Rahat plant, site and enabled SodaStream to employ people from the named "the Island of Peace", where people can see the local communities. However, members of these Bedouin actual work being done.

62 - Leaving No One Behind In August 2018, PepsiCo announced its plan to acquire no less important, we celebrated SodaStream, a move which was completed soon after in December that same year, at 3.2 billion USD. In a visit to the holidays, prayed side by side, SodaStream factory in late 2018, the PepsiCo CEO said that made friendships that span one of the factors that drove them to buy SodaStream was the positive diverse atmosphere, seeing the employees religions, nations and continents smile and shine. He felt that that is a healthy culture for a and we became a family. And company, and that PepsiCo could learn from it and develop 89 a similar culture itself .88 Every employee benefitted from family is forever.” the acquisition receiving $5,000 each, regardless of their salary level, their seniority or any other factor. Key take-aways:

SodaStream's diversity efforts were championed by the CEO. Diversity at Sodastream is a celebration; the He believed in that purpose and seeded his vision into the company celebrates diversity internally and core strategy of the company. SodaStream's spokesperson externally as a cause for pride and uniqueness. and Vice President of Human Resources, who were This is a very powerful engine to keep an ongoing interviewed for this publication, indicated that without his momentum. leadership the company would have never achieved such successful diversity. As Daniel Birnbaum wrote in a letter to all Sodastream employees in July 2019, when he announced Challenge: as company leaders acknowledge there he was stepping down as CEO, handing over to his deputy, is need to complement the current diversity efforts and would become company chairman: with structured mechanisms and processes, also regarding career advancement opportunities for entry level workers. "Looking back at the past 12 years, we have accomplished so very Dan Hotels 90 much together: We disrupted the Dan Hotels is one of the largest luxury hotels chain in Israel, beverage industry. We created with 14 hotels spread across Israel, including the King David Hotel in Jerusalem. It employs over 3,000 people from a jobs for 3,500 families. We proved wide variety of diverse backgrounds. that peace is possible between The company's diversity policy includes fair and diverse Israelis and Palestinians. We saved employment, and equal opportunities for all employees. It the world from billions of plastic also includes core values relating to diversity and guidelines for maintaining a diverse workforce, referring to gender, age, bottles. We became the largest religion, social and cultural background. The policy dictates sparkling water brand in the world. fairness and diversity from the initial stages of application, We grew our global presence through employment, promotion and end of employment. from 13 countries to 46. We got The hospitality industry suffers several challenges, including acquired by PepsiCo, a historical difficulties in recruitment and high rates of employee turnover – 40-60% a year. One of the main reasons for event for the State of Israel. But these challenges is that many of the employees are in entry-level positions, without significant promotion

Leaving No One Behind - 63 PART TWO Chapter 5 | CONTRIBUTING TO INCLUSIVE GROWTH IN THE WORKPLACE opportunities, and lack of skills and education. The low employees rising up the ladder unemployment rates in Israel over the past decade have exacerbated the challenge even more, leaving the industry, can reach senior managerial and Dan Hotels, with a constant shortage of employees. positions (such as hotel manager)

Dan has succeeded in recruiting a diverse workforce, within ten years as opposed to connecting strongly to the core values of the company, as around twenty years previously 91 well as answering a business need of more employees. Data derived from Dan Hotels submission to the Israeli The second channel is more basic and broad, and Diversity Award in 2018 points to high rates of Arab Israeli focuses on employees with less ambition in terms of employees among its workforce (47%), as well as 10% in their professional development. In these cases, the main management positions, which is nearly matched with the effort is to make sure that there is a very respectful and percentage of Arab Israelis in the total workforce in Israel. beneficial work environment, which in turn will answer the business need to reduce employee turnover. As part of this channel there are major efforts to ensure that non- work activities and in-kind benefits, such as recreational and cultural activities, meet the expectations and needs of most employees. The programme gives high attention to the needs of diverse populations, i.e. celebrating various religious holidays all together, across all religions.

Key take-aways:

Chen Michaeli (right), VP Human Resources at Dan Hotels, Hospitality industry could offer substantial discussing the company's career development and diversity programmes at a Maala event on Career Development Paths, opportunities for social mobility given the fact September 2019. that formal education is less of an issue, and professional development is more about merit, The company's long term vision sees working at Dan Hotels personal commitment and ambition. as a way to professionally develop and grow. In recent years, in order to meet that vision, and to answer the business Besides the strong connection between needs described above, the company launched a designated business needs and social impact, the real program called "Ofek" (horizon). The program runs in two difference seen in this case is due to the structural channels: the first, and more ambitious, is identifying entry programme to identify and invest in qualifying level employees with potential and ambition to professionally employees. develop and rise up the ladder, and designing an internal process that will make it happen. A major change in recent years is that the length of each phase in the development Challenge: Given the great opportunity, this should programme is much shorter than it used to be in order to meet be more utilized and scaled-up across the tourism the expectations of younger generations. So, for example, industry and beyond.

64 - Leaving No One Behind INCREASING EMPLOYMENT OF ULTRA- • Advertising jobs in Ultra-Orthodox networks, newspapers, ORTHODOX (HAREDI) JEWS: and other platforms. In this sub-chapter we look at case-studies from BDO and Western Digital. It was decided that the head of the Ultra-Orthodox branch would have a direct line of communication with the BDO Israel chairman and with the Vice President of Human Resources, BDO Israel is one of the leading accounting and consulting so that issues and problems that might arise during the firms in Israel. It is part of the global BDO network, operation at the Haredi branch would be resolved as complying with the standards and principles of the global quickly as possible. This line of communication proved to firm. BDO Israel has approximately 1,600 employees in over be very effective and had a significant contribution to the ten branches spread throughout Israel. success of the initiative. One of the most important landmarks in BDO Israel's work and efforts on diversity and inclusion was the establishment of a branch for Jewish Ultra-Orthodox (Haredi) women in the city of Bnei-Brak, east of Tel Aviv.

Ultra-Orthodox Jews constitute the majority of Bnei Brak's population. The Ultra-Orthodox community is characterized by segregation between men and women. In addition, Haredi families tend to have many children (an average of seven children per family).92 While men typically spend most of their time studying in institutions for Jewish studies Over the years, the company's work routines and (Yeshiva), women go out and work in addition to taking organizational culture developed to better suit its diverse care of the children and household chores. The new BDO workforce. Among the issues discussed in that regard: branch provided the women employed there a gender- mixed or gender-separated training and instruction; homogenous work environment near home, with a work-life integrating Haredi women in company events; kosher food balance appropriate to their family obligations. and kitchens in the work-space; and more. In some cases, the women would follow existing norms, and in other cases BDO's Human Resources division adapted its recruitment the organizational policy and culture was updated to meet process to cater to the needs and priorities of Haredi the needs of the Haredi women. women. In addition, it took into account that the majority of the women are young and lack professional experience, Building on the success of the initiative, an additional branch as opposed to secular employees who, in most cases, for Ultra-Orthodox women was established in the Jewish have prior experience in student jobs and internships. BDO Ultra-Orthodox city of Modi'in Illit in 2013. Today, the two Israel invests extra resources and goes to great lengths to branches together employ around 70 Ultra-Orthodox women. employ Haredi women. Their efforts include:

• Partnering with seminaries teaching Haredi women The main challenge BDO faces in employing Ultra-orthodox the profession of tax advisory work. The heads of these women is the high birth rate. At any given time, around 30% of seminaries were invited to visit the work-space in order the women in the branch are either pregnant, on maternity to give their approval for employing women from the leave, or just returned from leave and require time for nursing community there. their baby and re-familiarizing themselves with the work. Nevertheless, despite these challenges, the branch's close • BDO's IT division set up an internet platform blocking sites professional ties with other branches has strengthened Haredi restricted by the Ultra-Orthodox Rabbinical Committee for women's image as professional and reliable employees. Media Affairs.

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The successful experience with Western Digital and recruitment of Ultra-Orthodox women the Ultra-Orthodox branches The high density of high–tech businesses in Israel from proved very useful in establishing start-ups to major R&D centres of the world’s largest operations in the Israeli Arab technology businesses, means that there is an intense “war for talent” and a constant drive to differentiate, stand out – sector. Two branches were and expand the talent pipeline. opened in the city of Nazareth and Local HR specialists refer to the particular challenges of the in East Jerusalem, focusing their “G.A.F.A Talent War” (Google, Apple, FaceBook, Amazon) but operations in the Arab sector. highlight that in the past two years, major Chinese firms like Alibaba have also started to open up Innovation Centres in The knowledge and experience that the firm acquired in Israel. As a result, terms of organizational flexibility and the opportunities that it offers for expanding diversity efforts, have contributed to it is estimated that there is a the expansion of these branches, alongside the increase in diversity and inclusion throughout the entire firm. Some deficit of some 15,000 software diversity experts are cautious about programmes like professionals93 this BDO one, on the grounds that the Haredi employees remain largely still within their own community. The reality, leading local companies to expand their search for talent however, is that it is very hard to go from segregation to beyond the usual population sectors. The Israeli division of integration in one leap. Western Digital, which already employs around 1,200 people in Israel, is one of the companies seeking to engage Ultra- Orthodox women. They see this both as part of expanding Key take-aways: their talent pipeline as well as as being part of their drive to achieve greater diversity and inclusion in the workplace. An example of meeting a diverse and somewhat segregated community where they are but Around 1,000 ultra-Orthodox women complete associate bringing the economic development to their software engineering programmes in Orthodox seminars doorstep. in Israel each year, and a few hundred find employment in the local tech industry through specialized employment Part of the success is due to the decision to allow agencies. Jobs outsourced through the agencies are most for top management to be involved in solving on- often low-level and with virtually no promotion opportunities. going issues and disregarding hierarchical structures. According to government data, only 0.4% of tech high earners in Israel are Orthodox and ultra-Orthodox women.94

Challenge: allowing for separate working zones Western Digital worked with KamaTech, a non-profit where needed but at the same time encouraging organization established to facilitate the successful integrated branches and bringing employees together integration of Haredim (ultra-orthodox Jews) into the Israeli when possible. High-Tech workforce.95 (KamaTech started as a coalition

66 - Leaving No One Behind of 30 leading hi-tech companies, innovative startups company dress-code encourages appropriate work attire so and venture funds, among them Cisco, Intel, IBM, Google, this has not generally been an issue. Microsoft, Amdocs, Checkpoint, CitiBank Innovation Centre, Pitango VC, Canaan Partners and more) Western Digital's Israeli site manager Shahar Bar-or is on www.kamatech.org.il/ 96 the record that:

In a pilot programme, in 2018, six women were hired after a "None of the women or the rabbis we met with asked us to skills-assessment process, and 12 after a targeted three- change the management style of the company… You can month-long bootcamp programme. Originally intended for always either try to pile up hurdles or opt for tolerance. In engineers with academic degrees wishing to add domain- my opinion, that's the kind of maturity that's needed when specific knowledge that can land them a job at Western considering employment diversity. Not everyone has to Digital, the bootcamp programme was tailored specifically conform themselves to the same DNA." for the ultra-Orthodox coders. It is believed that this is the first time that Ultra-Orthodox women have transitioned When we interviewed Western Digital in June, they were from a KamaTech programme into a multinational about to launch a second boot-camp. The company is also part of a High-Tech HR Forum which is part of the High As journalist Hagar Ravet describes the initial bootcamp: Tech Industry Association. ‘As part of the process with Western Digital, KamaTech worked alongside the ultra-Orthodox community to get a rabbinate stamp of approval for the initiative. Each side— both the community and the tech multinational—has to decide which issues are non-negotiable, and which are something they can compromise on. An example to one such question: can an ultra-Orthodox woman sit next to a secular woman at the office?

...The Jewish Orthodox community in Israel uses “safe internet” providers that filter content according to rabbinical directives. "The rabbis did not want them to have unlimited access to the web, but the company said they must be able to conduct online searches. We found a Western Digital celebrating with employees winning the Dov Lautmann Diversity Award in 2019. Photo by Ilan Spira solution of a partial content block, that did not hinder their work ability but also satisfied the rabbis." 97 The Forum’s quarterly meetings bring together CEOs, There was also negotiation between Western Digital and the CFOs and Chief Human Resources Officer to exchange individual, would-be employees. The company conceded experiences and good practice; and Western Digital is that whilst it could not commit to the Ultra-Orthodox women receiving many requests from other companies to share only being supervised by female managers, they would not their experiences with this pilot programme.98 These have to sit in the same room with any male supervisors. requests are likely to increase as a result of Western Digital Conversely, when one of the candidates said she could becoming the first high-tech businesses to win the Dov not see anyone dressed informally, Western Digital had Lautmann Diversity Award for 2019 for their efforts to to explain they could not guarantee this, as some of their recruit Ultra-Orthodox employees. The company is now younger, secular male employees turned up work in shorts extending the concept with parallel programmes to recruit and T-shirts in summer time. In practice, however, the more Arab Israelis and more Druze employees.

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Western Digital is also part of a new Haredim for High- job and looking after a loved one. Caregivers Israel, an Tech Forum, alongside Amdocs, Google, Intel and NGO, calculates that 1:4 of the Israeli workforce may be other companies from the high-tech and defence working carers. International research shows that carers industries, as well as academia, government (Israel – especially those caring long-term and long hours can Innovation Authority), Start-Up Nation Central and the become lonely, depressed and feel socially isolated. Haredi community. The Forum is an initiative created by Many carers have to give up work to care for their loved the Haredi Institute for Public Affairs to formulate and one – which usually puts added strain on family finances propose a policy-oriented national plan that will facilitate both immediately and for the long-term as savings are a nationwide infusion of Haredim into the high-tech and depleted and there is limited opportunity to build up defence industries. pension pots. Hence the growing recognition that by supporting employees juggling work and care and helping Key take-aways: them to stay in work, employers can help themselves (retaining experienced staff) and employees affected – Necessity is the mother of invention! The War and reduce one cause of social and exclusion. for Talent has created the business case for being more proactive in looking for talent from Drawing on the experience of carer charities in other unconventional sources. countries, including Carers UK with their Employers for Carers Network (which recently celebrated its tenth It is all too easy to assume that other partners anniversary), Caregivers Israel (established in 2014) has will be uncompromising, whereas being open and been piloting a scheme to encourage employers in Israel to transparent and willing to find creative solutions, help their working carers. can produce results.

One of the first companies that Caregivers Israel worked with is Teva Pharmaceutical Industries. Teva is an Israeli Challenge: will be to build on the pilot and run multinational pharmaceutical company headquartered in these customised pre-recruitment, training , 10 km east of Tel Aviv in the central district of programmes at scale and to involve many more existing Israel. Teva is one of the largest generic drug companies in employees, who will also need to meet the needs of these the world, with a vast portfolio of over 3,500 medications new recruits part-way in terms of their own behaviours. manufactured by the company, including many specialty medications. Teva has over 43,000 employees worldwide, 99 Helping Working Care-Givers: Teva and and is active in over 60 countries. It is one of the 15 Care Givers Israel largest pharmaceutical companies worldwide. As populations age and medical advances mean that many more people with severe disabilities and serious In 2018, Teva consulted employees medical conditions survive and live longer, the incidence of caring for loved ones by family members and friends, about the needs of those juggling is increasing around the world. Typically, they will be work and caring responsibilities. In caring for a parent or other elderly relative, a partner with a long-term condition and/or a sibling or child with December, they launched “Teva disabilities. Many of these carers will be juggling their Cares for Carers.”

68 - Leaving No One Behind Initial support included Carer champions in each Teva site, Key take-aways: regular internal communications, making the information Helping working carers is a growing dimension of resources of Care-givers Israel accessible via the Teva diversity and inclusion Intranet, and adding support for carers to the contract specification for Teva’s occupational health provider. It is good practice to identify employees who are looking after a family member or friend and to As the consultations with employees had identified social consult these employees on the practical steps isolation and neglecting one’s own health to give priority to that would have a positive impact on their lives. the needs of the person cared for, Teva decided to provide Very often these will be low/no-cost adjustments. their working carers with vouchers for paid days off to be able to do something for themselves. For working carers the option of working remotely and flexibly can be key to staying in the workforce. Creatively, Teva also added working carers to the list of those employees eligible for cash grants from a fund where other employees can donate their unused holiday Challenge: to leverage Teva's example and others to entitlements, with the company effectively paying the fund encourage many more employers to develop Carer for these donated days. policies too

Caregivers Israel in partnership with JDC-Eshel is now OLDER WORKERS supporting a number of other employers both large and Gevasol 101 small, including Roche, Abbvie, Hertz and Assuta. They "Experience cannot be bought at the Technion (Israel are determined to make support for employees juggling Institute of Technology)…" Gideon Yadin, founder of Gevasol, a job and caring for a loved one, an integral part of what believes that older workers have knowledge and experience, represents an inclusive and responsible workplace. As the commitment, flexibility, less ego problems – all of which are CEO of Caregivers Israel, Rachel Ledany observes: important qualities for business. "Caring is part of our life and matters to all of us. Most of us will face the complexity of combining work and care at Gevasol is a privately owned manufacturing company, some stage in our careers. It has an influence on people, founded in 2002 and owned by Gideon and Ya'ara Yadin. organizations and societies. Responsible organizations, The company employs over 300 people, with production like those we are working with, have realised that sites in Israel, The Netherlands and India. In Israel, the identifying and supporting their employees in their company is situated near the city Beit She'an, in the north- challenging phase as caregivers, is about promoting eastern part of Israel. The company products are mostly the resilience of the employees and the workplace as Built to Need (BTN), as they are tailor-made to meet each well. We have to encourage organizations to become customer's needs. Products are mainly in the fields of fluid "caregivers friendly" by adopting specific policies and and motion control, including various types of valves and 100 creating a caring culture." motors, and sealing solutions.102

Caregivers Israel is also now supporting a programme with The Yadin family, founders and owners, believe that the Israel Civil Service Commission (CSC) as ten ministries integrating older workers in the workforce contributes were announced as care-giver friendly and a new policy greatly to both the business and to the workers was written for working caregivers in the civil service. CSC themselves. Hiring older workers is standard at Gevasol is the largest employer in Israel. and is at the top of the agenda for all those working in headhunting and hiring.

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Gevasol has set an ambitious goal of having older workers There is currently a need to have proactive initiatives to make up 30% of the workforce. This goal was established help older workers stay in or return to the workforce. The after considering the continuous growth of older age longer-term solution, as a new OECD Report (Working populations, and that in the areas where Gevasol is Better with Age – Oct 2019) makes clear is: situated there are large communities of older people in need of work beyond retirement. Older workers currently “Promoting the employability of workers throughout their comprise around 20% of the company's workforce. working lives – with a view to enhancing employment Gevasol's 15+ years of experience in employing older opportunities at an older age – is also a key requirement workers show that employing them is beneficial for all. for longer, rewarding careers. In the context of population ageing, mobilising the potential labour force more fully The main challenges are around finding older workers and sustaining high productivity at an older age are with the appropriate expertise for the work, especially in critical. This in turn requires a healthy workforce with up northern Israel where the factory is situated, away from the to date skills.” 103 central business and manufacturing districts. As a result, Gevasol partnered with the Maianot Regional Council to Key take-aways: establish Idan Technology – a locally based entrepreneurial centre, run in a joint effort between Gevasol and the Maianot Regional Council. The centre connects education, Hiring and retaining older workers is a win-win technology and industry, enabling local communities to for employers and employees. be exposed and integrated into industrial companies. The Older workers may, however, need new activities at the centre include lectures, courses, seminars, technology skills in order to be employable. and more. These enable older populations to pass on their knowledge and skills to younger generations, and through the centre Gevasol is able to access potential older will be to build on the pilot and run workers and hire them. Challenge: these customised pre-recruitment, training programmes at scale and to involve many more existing For its efforts on diversity and inclusion of older workers, employees, who will also need to meet the needs of Gevasol won the annual Israeli Diversity Award in 2018. these new recruits part-way in terms of their own behaviours.

CONCLUSION The Maala-GlobeScan Radar, a public opinion survey analysing societal attitudes, expectations and trust in businesses, has consistently shown since 2014 that, in the eyes of the public, the most significant issues facing the state of Israel after security are socio economic issues and basic needs for living. This is very consistent with the A Gevasol employee. Photo by Sharone Amit, 2018 unique Israeli characteristic of "leaving no one behind".

70 - Leaving No One Behind What are the significant issues facing the State of Israel? 35% Security, terrorism and wars Education 3% The health system 4%

Policy, Israeli-Palestinian conflict 5% 29% Corruption (15% in 2018) 14% Socio-Economic 5% 10% Cost of living 5% Housing National rifts (11% in 2018) 6% Identity | Values | Religion 8% 9% Distrust in leadership Source: Maala-GlobeScan Radar (2019)

Given the negative impact of in-work poverty on business characterised as a “Fast-learner” and “Fast Adaptor.” The productivity, the need to improve labour force participation country excels at what management guru, Tom Peters of currently under-represented groups, and the high once described as “creative swiping.”104 Namely, adopting significance of socio economic issues on the public agenda, and adapting the good ideas of others, tweaking them and it is easy to understand why businesses in Israel choose to testing them out in different contexts. Happily, there is an tackle in-work poverty and increase social mobility. increasing body of initiatives and activities internationally, which Israeli employers can tap into and “mash up” for It is important to note that while there are extensive efforts their own circumstances. These include the current by businesses to include marginalized populations in their ValuAble 500 campaign, launched at the World Economic workforce, there is still a lot more to be done on this issue. Forum in January 2019, to persuade 500 global businesses Looking ahead, future work on inclusion will expand to to commit to making disability a board issue. Bank Hapoalim empowerment and helping employees move from entry- is an Israeli champion for ValuAble. (www.thevaluable500. level posts towards promotion to management. com/) Other resources include the Future of Work project at the World Business Council for Sustainable Development Various of the practices described in this chapter have (futureofwork.wbcsd.org/) and the UK-based Living Wage also been implemented in other parts of the world, at Foundation (www.livingwage.org.uk/) some stage in recent years. Significantly, now, however, there are a number of NGO intermediaries in Israel helping Similarly, we might expect the High-Tech hub and Start- employers to recruit from marginalised communities and to Up Nation quickly to learn from new technology start-ups provide support for low-income employees. These NGOs in Europe like Salad Money (www.saladmoney.co.uk/) include Al Fanar, the Israeli Forum for Employment Diversity, and FreeUp, UK-based companies that are developing Tsofen and others. technology to enable workers to receive early payment for earned, but unpaid, wages at zero cost to the employee. Both Additionally, there are more opportunities to apply good these services reduce the need for low-paid workers to have practice from other parts of the world. As well as being to use pay-day lenders which often charge very high rates of the Start-Up Nation and a High-Tech hub, Israel might be interest, and can lead to a vicious circle of everlasting debt.

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Meantime, any business in Israel can consider this practical checklist for Workplace activities.

PILLAR FOUNDATION DEVELOPMENT CHAMPION

Establish base-line: composition Extend number of target groups Establish new stretch targets of workforce: entry-level, junior/ currently under-represented in on percentages of under- middle/senior management in workplace that business is trying represented groups in workforce terms of gender, people with to recruit at both entry-level and disabilities, ethnicity, etc management levels

Set target percentages for total Revise and increase target workforce & for management in numbers for employing Ultra- terms of gender, ethnicity, people Orthodox Jews, Arab Israelis and

WORKPLACE with disabilities, etc. people with disabilities

Identify & implement necessary Monitor retention and workplace workplace modifications in advancement rates for target order to accommodate under- groups. represented minority groups such as Ultra-Orthodox women, Appoint workplace champions Arab Israelis for employing Ultra-Orthodox, Arab Israelis and people with disabilities, and working carers

Train first line-managers in Establish employee peer group managing cross-cultures and networks for people with people with disabilities disabilities, Ultra-Orthodox, Arab Israelis

Work with partners - to identify & Join external learning networks Share company experience in provide pre-recruitment training to share emerging good practice external talks and interviews by to target under-represented and learning company chair/CEO/SMT (Senior groups Management Team)

72 - Leaving No One Behind PILLAR FOUNDATION DEVELOPMENT CHAMPION

Identify and provide support for Pay enhanced Minimum Wage Develop a compressive plan to employees living below poverty- advance personal and economic line well-being, focused on low income employees

Build a career path for entry level Build a compressive programme employees for reskilling and career path for entry and mid-level employees WORKPLACE

Set targets from internal recruitment for higher skilled jobs for entry level employees

Train and provide tools for Train content experts on pension Advise on pension planning to all pension planning planning within the organization employees

Fund retirement planning courses Continue entitlement of retired Offer courses and training to employees to the organization’s develop skills and capabilities of well-being benefits retired employees

Establish baseline of working Consult with working carers on Offer paid Carers’ leave carers in the organization development of programme for practical support for working carers

Monitor & regularly report on progress

For further ideas, see Maala's "Inclusive Growth - A Compendium of Best Practices in Israeli Businesses to support employees and increase social mobility" [Sep. 2019]

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CHAPTER 6 | SUPPLIERS

INTRODUCTION 2019 this had risen to 84 companies supported by ten large companies who recommended the index to their suppliers. In December 2014 Maala (See Table Below) convened a meeting of some 15 2016 2017 2018 2019 2020 CEOs from its member companies, Target Maala member hosted by the then chairman of companies 3 8 5 10 15 Bank Hapoalim. The main agenda recommending item was the expansion of CSR to Participatng 23 50 75 84 100 mid-size companies in the Israeli SMEs market through the supply chain The Basic Index is based on a questionnaire covering the of Maala's member companies. main pillars of responsible business and focuses on initial steps that promote fair treatment of employees, workforce The suggestion was somewhat risky, as Maala's chairman, diversity, reducing environmental impact, and code of ethics. Micky Adiv, pointed out – getting CEOs to agree to add such It is structured in multiple choice questions providing a an element to their agreements with major suppliers could management system for implementing good standards, as be perceived as interference with their business decisions well as open questions that invite descriptive answers on the as well as a costly move. Maala put forward a first version of company's approach to responsible business conduct. a light CSR index based on the existing comprehensive Maala CSR index, and asked the CEOs present to support a move to Rated companies have reported internal and external benefits introduce the light index to their respective suppliers as a way as a result of participating in the index. An IT company to both start a ripple effect of spreading CSR standards to the shared that the process has increased internal cooperation second tier of Israeli mid-size businesses, as well as elevating between departments which didn't communicate much procurement standards within their supply chains. beforehand. The internal process of collaborating on collecting the data and reporting it created for the first time a more Maala came out of this meeting with unanimous approval comprehensive picture of the company's social impact, which for this plan. It was apparent that most of the CEOs present created the appetite to do more. were aware of the impact that this decision might have on their business operations, but were in agreement that this Additional feedback, which was repeated by several of the was a necessary step both in terms of their commitment SME companies, was the opening up of a new channel of to responsible business as well as strengthening mid-size communication between themselves and the businesses and the Israeli economy at large. procurement departments of their large customers which developed the relationship beyond the typical dialogue that The Maala Basic Index 105 was formally launched in June 2016 focused on costs, payments and order requirements. One of rating 23 companies, backed by three large companies who the companies went even further in describing how its CEO encouraged a selected group of their suppliers to join. By and senior management team felt that for the first time they

74 - Leaving No One Behind could communicate the social commitment that they felt was This chapter will describe various case studies that showcase always there but was never seen as being within the scope of efforts to empower and raise standards with mid-size their large business customers. businesses and thereby spread more Inclusive Growth. Some of these examples are linked directly to the process that the The index also encourages further investment and work. Maala Basic Index has initiated, and others tackle specific For example, several companies used the index to increase barriers to strengthen and empower SMEs in the Israeli market. internal awareness of employee volunteering, create new An overriding theme of this chapter is the strengthening of a sustainability programmes and reported back on the benefits local economy in the context of a developed market. Rather of that to their employees' satisfaction and motivation. Several than the more common work in the responsible business companies started writing Codes of ethics using internal field of empowering suppliers across the global supply chain knowledge of their teams, and published these in due course. focusing on developing markets. This relates to the theme Publishing their Code of ethics also gave them an advantage of this publication which is focused on the local economy. In with their large customers. this regard, it is worth noting that, according to the Ministry of Economy, small and mid-sizes businesses are a major growth Preliminary data from the Maala Basic Index gives a snapshot engine for the Israeli market. of the strengths and challenges of mid-size businesses in Israel. 79% of the rated companies already have a code of According to the 2017 data, there ethics, however only 50% have shared it publicly and coverage of the code of ethics in training programmes is lacking. In are over half a million SMEs diversity, some figures are higher than the large companies, who make up 99% of businesses in with 11% Israeli Arab employees (versus 5% among large companies), but lower in terms of percentage of women in the country managerial positions – 20% among SMEs versus 30% in large They are responsible for 53% of business production and companies. employ 61% of the employees in the business sector. They are also the largest contributors to adding new jobs to the The major differences between mid-size and large companies market. 106 are in employees' welfare, specifically low-paid workers. While the numbers of companies who are committed to an increased minimum wage (around 40%) and ready to give loans at better conditions (around 70%) are similar between Sano107 mid-size and large companies, in the more advanced Sano is a well-recognized Israeli brand specializing in practices the differences are very apparent, i.e. supporting laundry products, home care products, cleaning and social work services – only 14% versus 60%; subsidizing training hygiene products, kitchen accessories and useful products, and university tuition for employees and their families – 32% air fresheners, insecticides, paper products and more. versus 63%; training on household finance – 22% versus 51%. Fifty years ago, in a small hall in Tel Aviv, Bruno Landsberg From the point of view of the large companies who promote set up a small cleaning factory. The factory employed the basic index among their suppliers, there is already an three employees who created the first two products of impact. There is now a group of procurement officers from the company – mothballs against moths in cellophane Maala member companies who are turning into champions of bags and a product for cleaning toilets in a pink, sealed responsible business. Bank Leumi, which will be detailed later plastic bottle. Bruno named the toilet product “Sano” – a in this chapter, is an example of a company that has already Latin name that means “clean”, and which derived from integrated questions on responsible business conduct and the the saying “Mens sana in corpore sano,” which means “a Maala Basic Index in the contracts with its suppliers. healthy mind in a healthy body”. The product was very

Leaving No One Behind - 75 PART TWO Chapter 6 | SUPPLIERS succesful and its catchy name became the brand that all The conference also featured an online dialogue that the company’s products currently bear. enabled anonymous feedback to Sano. 130 suppliers participated in this conference, out of which: Today, Sano manufactures more than 500 different products • 85% declared that Sano is open to dialogue and feedback; in a wide variety of areas at five plants across the country, • 96% agreed that Sano has a high payment ethics giving employing over 2,000 people, and is listed on the Tel Aviv confidence to suppliers that they can rely on the payments Stock Exchange. The current CEO is the grandson of the timetable (an issue that is often regarded as problematic founder and the family still has a major share in the company. by SMEs supplying large organisations);

In 2016, after already being ranked on the Maala index, the • and 82% declared that the terms of the contract with procurement officer at Sano decided to start a process of Sano are clear and fair. strengthening partnerships with the company’s suppliers. Sano reported to all suppliers on the results of the The idea was to go beyond mutual interests in the supply feedback and also transparently committed to act in chain to build a shared understanding of the needs of response to the fact that only 64% of its suppliers felt that each side, to increase quality and reliability, and essentially Sano acts fairly with its suppliers. to create a new long term contract in which Sano is committed to fairness and loyalty to its suppliers, while Another unique feature of the partnership between the suppliers will show Sano the same, thereby ensuring Sano and its suppliers allows both Sano and a selected transparency, dialogue, trust and long term partnership. group of suppliers to know of the current inventory in the What some have called “long-term shared destiny warehouses of both sides. According to Sano's head of relationships.” procurement, Sano is the only company in Israel that works on this model which allows a very high level of efficiency and transparency. All in all, suppliers that have adopted CSR standards have seen a sharp increase in their activity with When Sano launched the process, whilst the value-based Sano, long term contracts with motives were present, there was also a clear business reason: the procurement team were able to prove that the company and a higher level of increasing trust and loyalty between Sano and its suppliers business success. has a direct economic value for both sides. One of Sano's main principles to build an effective partnership with its The head of procurement is often invited to share this suppliers is increasing transparency and trust. A good case study and lecture to other procurement officers example of that was the suppliers' conference held in June about his work and feels that he has a major share in 2018, which included extensive content on responsible Sano's improved performance in the Maala 2019 index. In business through external lectures, and an invitation to join 2019, Sano received the highest Platinum+ rating and was the Maala Basic Index. This has been accepted so far by rated highest in its sector. some 20 of its suppliers.

76 - Leaving No One Behind Key take-aways: good service. Those two trends create fertile grounds for responsible business conduct which I am pleased to see in The procurement officer becomes a champion major parts of the Israeli business sector." for values that build trust with its suppliers. Shimoni has witnessed how some of the company's major Full transparency with suppliers contributed to clients who started the process of introducing advanced higher performance. standards through the supply chain are implementing positive steps and recognizing their efforts to achieve high standards. He is particularly encouraged by the fact that Challenge: the company points out some gaps it needs to meet in terms of suppliers’ assurance that they are treated fairly. many new procurement officers, many of whom are in their mid-30s, show a deeper social Tavas 108 Tavas is one of Israel's leading cleaning services conscience that characterizes companies, founded in 1986 by three brothers who are still their generation. involved in managing the company, following its partial sale to one of the largest maintenance and services companies There is still a way to go in terms of the business sector, in Israel: Electra FM Group. The combined company now Shimoni believes. He sees this particularly in traditional employs 2,400 employees throughout Israel, and prides industries where procurement officers tend to be more itself on the quality of service, but also on its commitment conservative and in many cases would maintain the to responsible business and caring for its employees. Tavas divide between their employees and cleaning personnel was one of the first companies to join the Maala Basic employed by a supplier, primarily in terms of benefits and Index in 2016. wages.

Ilan Shimoni, one of the founders and current CEO, also Key take-aways: serves as the chairman of the Israeli Organization of Cleaning Companies. In both his roles, Shimoni is one of the A compelling case that, given the nature and size advocates for higher wages for cleaning personnel, arguing of the company, represents a comprehensive and that the State minimum wage does not reflect actual quick outcome of deciding to take a leadership living costs and pointing to the gap between what people role in the cleaning service business sector. would pay personally for cleaning their houses versus the inclination of corporations to stick to minimum wage when It is also an example that even in challenging it comes to cleaning offices and corporate sites. business circumstances you could have a clear advantage once you decide to commit to ethical After years of preaching on this, Shimoni feels that there business behaviour. is finally a shift, and the values of responsible business are also reflected in the treatment and wages in his part of the supply chain – cleaning personnel. "I see clearly two trends Challenge: it is an on-going challenge to deliver that complement one another: a desire for social justice messages to clients and make sure that the and zero tolerance for wrong-doings, and a shortage company’s commitment to its employees is shared with of employees in this sector that encourages clients to clients. increase employees’ pay in order to maintain stability and

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Bank Leumi One of the first companies to join the process of inviting acknowledging the importance of responsible business to suppliers to join the Maala Basic Index was Bank Leumi the bank. The letter explained the decision to encourage already profiled in Chapter 5 (see page 54 above) led suppliers and business partners to also join the initiative. by its Procurement Department. Bank Leumi works with The bank informed its suppliers that in selected over 1,000 suppliers, has a procurement budget of about procurement processes, the bank is seeking to further 2 billion NIS per year ($0.57billion), and with 67% of its expand social and environmental criteria. suppliers categorized as SMEs.

The decision to get on board with the new initiative of the Maala Basic Index was part of a long standing realization that the bank could play a significant role in helping SMEs and start-ups to grow, if the typical barriers in language, mode of operation and capacity between SMEs and large corporations could be identified and better managed. The bank has already committed to diverse and green procurement, a fair payment policy, assurance of proper working conditions for the suppliers’ workers, and a transparent compact between the procurement team and Udi Rosenbaum (right), former procurement officer at Bank the suppliers covering vital aspects of the relationship. It is Leumi, awarding a certificate to the bank's suppliers who argued that this produces more long-term stability for the participated in the Maala Basic Index, 2017 SME suppliers and thereby contributes to more diffuse and inclusive growth in Israel. The main message was about inviting and encouraging suppliers to align with CSR standards. It was made clear that Bank Leumi's procurement team had first shared its this was not a new formal requirement, but rather a voluntary procurement work methodology in a closed session process. All in all, between 2016-2019, the bank identified arranged by Maala in 2015, which in turn had been a around 80 leading suppliers that were invited to join the follow-up to the December 2014 meeting with 15 CEOs Maala index, out of which some 23 have joined so far. described at the beginning of this chapter. Then in 2017 the bank hosted a session for procurement officers from In 2017 the bank hosted a first 25 leading companies. In the session, the then head of procurement at the bank Udi Rosenbaum shared the of its kind event to honour the work that they were doing and encouraged others to join suppliers that have joined the the effort to capacity-build their own SME suppliers. The overriding theme was to strengthen the Israeli economy index so far, with each supplier and promote more inclusive growth through capacity awarded a certificate. building and empowering SMEs. The bank shared the strategy and the work at the Maala The process of inviting suppliers to join the Maala Basic 2017 international conference as part of a designated Index was publicly launched in 2016 with a formal letter session for procurement officers. One of the outcomes of signed by the Head of Procurement at Leumi, this process is that within the bank's procurement tenders,

78 - Leaving No One Behind under the category of quality-based standards (versus The organization began in 2006, and through strategizing price-based tenders), part of the score is determined on decided to expand as a hub that would help suppliers and whether the company is rated on the Maala index. This is clients alike to connect and grow. Over the years, Jasmine evident in the case study of Tavas, one of Leumi's suppliers, has helped over 11,000 women, Jewish and Arab from also described in this chapter. This process has proved all business sectors. (Jasmine’s President is Ofra Strauss, very significant for suppliers of the bank. Bank Leumi also Chairwoman of the Strauss Group.) has a policy of paying suppliers within thirty days and since 2013 has had a Suppliers’ Charter based on the Leumi “Jasmine believes that providing women with the Way. (The Leumi Way was formulated in 2005 by the bank’s opportunity to become financially independent will employees and was the first written code of ethics in the positively impact the society in Israel as a whole: banking system in Israel.)109 many households will improve their financial status, and communities will prosper, which will decrease Key take-aways: the tension between different parts of society and will directly affect Israel’s security; the cross-community The first company in Israel to take such a public business partnerships that Jasmine encourages, will stand on the subject of empowering and capacity allow the different societies in Israel to learn to co- building of suppliers and SMEs. exist. Furthermore, we believe that women have the power to positively impact our future generations and A continued effort that found its manifestation with the bank’s contracts with its suppliers, so by providing them with financial independence, we acknowledging the bank's ability to empower and provide them with the power, confidence and knowledge 111 build capabilities of its suppliers. necessary to make a better life for our children as well.”

We Source calls upon procurement officers to look for Challenge: presently, the work is with a number of the following underrepresented groups within the Israeli selected and chosen suppliers - more work needs economy: women-owned businesses, businesses owned to be invested in expanding the initiative to engage many by minority groups (in both cases the criteria is at least more suppliers.. 51% ownership), businesses from geographical and social periphery in Israel, businesses with a substantial representation of minorities within their work force, and local We Source SME's in reference to the clients' geographical location. We Source is a three-year-old initiative aiming to increase the diversity of supply chains, focused on communities So far, We Source has created a data base of about 700 within Israel who are not fully integrated in the work-place businesses who qualify for one or more of those criteria. and the Israeli economy. The main message is the potential These companies have also been checked in terms of impact that companies have through their supply chains, if their financial stability and other basic business criteria. they would proactively seek ways to diversify their supply Parallel to that, We Source is working with procurement chains beyond their existing pool of suppliers. officers to both understand their needs and get their feedback on what would help them reach the goal or The initiative is led by an organization called Jasmine, the mission. The organization currently works with some which began with the mission of helping women-owned ten large companies including Bank Leumi, Strauss businesses, particularly Arab women, to grow and Group, Zionut 2000 organization. Other partners include flourish.110 (en.jasmine.org.il/who-we-are/) the largest corporations in Israel from various industry segments including Intel Israel, Verint Systems and Procter & Gamble Israel.

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We Source is working on creating a digital platform and the sole operator of the electricity grid in Israel. It to better connect the two sides. With most of those has nearly 8,000 suppliers, with a procurement budget companies there is also an internal process that We of about 4 billion NIS a year. ($1.3BILLION) IEC is rated Source helped facilitate, including mapping the current Platinum+ on the Maala CSR Index and as part of managing suppliers and identifying potential areas to invite new CSR the procurement division has looked to implement suppliers that meet the We Source criteria. new standards for some years now, also encouraging suppliers to join the Maala Basic Index. We Source already boasts some preliminary success of SMEs starting to work with large corporations, and also Procurement at IEC was spread throughout different some small businesses who have already managed to departments. In 2017, the CEO and the board of directors double their annual revenue through those new business led the process of centralizing the procurement into one opportunities. The unique offering, which is also the main department dedicated to procurement. As part of that, challenge We Source faces, is to help Israeli SMEs from policies were updated, highlighting fairness towards all under-represented communities within the economy suppliers; transparency and simplicity – the complex and and society. This can be even more challenging than the bureaucratic procurement processes were transformed more common initiatives that try to connect suppliers into simple and transparent steps (e.g. dropping the from developing countries to the global supply chains of demand for a bank guarantee), with an aim of including multinational businesses. The challenge here lies within the small and mid-sized suppliers; and increasing the pool of understanding why procurement departments need to go suppliers. This was not an easy challenge: given the size some way in order to work with those diverse suppliers, of IEC and the company being a utility-based company, when one could argue that any SME would appreciate over the years most of the suppliers were large companies some help in getting to work with corporate giants, The that could meet the financial and technical requirements long term challenge is to go beyond what is now more of that IEC needed. The procurement department began matchmaking process to a more built-in process that has to look into various tenders and proactively searched for in place various incentives and opportunities for SMEs to ways to open up processes so that smaller and new- take the leap and work with those corporations. to-IEC suppliers could apply. They held a number of open meetings with potential suppliers explaining how to Key take-aways: respond to tenders, assisting them in the process, while at the same time doing internal work to Many businesses seek suppliers with an added shared value- this is the potential of the initiative. break up very large tenders into smaller tenders, so that Challenge: it is difficult to enter into procurement more companies, smaller ones systems and to balance between the client's wish and the capabilities of the supplier. in particular, could meet the requirements.

Israel Electric Company The first meeting was held in 2017 and attracted more Israel Electric Company (IEC), a state-owned company, than 150 companies, dozens of which eventually joined as is the main provider of electricity and energy in Israel, suppliers of IEC. Following this success, additional meetups

80 - Leaving No One Behind have been held since. IEC constantly works on increasing CONCLUSION dialogue with its suppliers, i.e. visiting factories, including The focus and the expertise built up so far since 2015 in remote and rural areas, in order to further engage has primarily been on improving relationships with and with them. Subsequently, there have been four more capacity-building for existing suppliers – especially those meetings in which 520 companies and individual suppliers which are SMEs. There is great potential to extend this participated and most of them are now registered capacity-building and make it more strategic. This might suppliers for IEC. include, for example, the use of Big Data and data-analytics to capture, codify and communicate good practice with The revised procurement strategy and new procurement and amongst suppliers; and create on-line information policies and performance have already shown good exchanges and collaboration-facilitation platforms amongst results, both for IEC and its suppliers. IEC adheres to strict suppliers. This could also involve providing preferential loan supply chain standards, including enforcing employee facilities for suppliers needing CAPEX (Capital Expenditure) rights in labour-intensive contracts. For example, if a to increase capacity/make it more sustainable. According contractor defies employees' rights, IEC will not hesitate to the OECD, only 15% of Israeli SMEs currently export. A to foreclose guarantees or initiate other sanctions on further opportunity to help build the resilience of SMEs the contractor until all employees get their rights. These would, therefore, be for some of the large companies to standards also include checking the environmental help their suppliers to start exporting successfully. performance and responsibility of all suppliers, through supplier engagement surveys.

Key take-aways:

One of the largest utilities companies in Israel that understood the importance of empowering SMEs. In the future, we might also expect large companies to be more proactive in identifying potential new suppliers: The work undertaken has created economic minority-owned and run SMEs from marginalised value for the company and an opportunity for new communities and to capacity-build so they are able to suppliers to start working with IEC once tenders bid successfully for tenders, possibly giving them a price were divided into smaller scale ones. advantage worth (say 5-10% on the tender price versus competing bids). Breaking up larger contracts to make The company is state owned and must abide by them more attractive to SMEs will also help create a more the government tender regulations. Nonetheless, level playing-field and encourage inclusion. it still finds value in incorporating social criteria into the procurement processes. There are also opportunities to develop further the capacity of intermediaries like Jasmine/WeSource and to introduce them to other businesses, so that these Challenge: to engage more of IEC’s suppliers in intermediaries can successfully connect more minority- more comprehensive “long-term, shared destiny” owned / run businesses, with large companies. dialogue with the company where both parties commit to identifying how to continuously improve their working Meantime, any business in Israel can consider this practical relationship. checklist for Supply-Chain activities.

Leaving No One Behind - 81 PART TWO Chapter 6 | SUPPLIERS

PILLAR FOUNDATION DEVELOPMENT CHAMPION

Review payment terms and Build on-line Supplier Interchange Break up larger tenders into commit to paying all suppliers where suppliers can also share smaller tenders so that SMEs can on-time good practice to raise standards realistically bid for them and support Inclusive Growth procurement

Verify that manpower/service Recommend Maala Basic Index Incentivise suppliers to join the contractors comply with labour to SME suppliers Maala Basic Index laws

Ensure procurement policy Check procurement processes Set aside percentage of all also include reference to the inherently address social and contracts by value for suppliers advancement of social and environment issues from minority groups such as SUPPLIERS environmental issues Ultra-Orthodox, Arab Israelis, people with disabilities. Set targets for suppliers with social and environmental edge.

Periodically survey suppliers’ Run regular supplier Run comprehensive Supplier views of working with the conferences to share good capacity building programmes company practice and build capacity

82 - Leaving No One Behind Leaving No One Behind - 83 PART TWO

CHAPTER 7 | MARKETPLACE: PRODUCTS AND SERVICES PILLAR

INTRODUCTION several case studies showcasing (1) products and services The third broad pillar of inclusive growth as defined by helping customers live better lives from companies such Morgan Stanley is around goods and services that are, as Clalit Health Services, Unilever, IBI and the Strauss either by their nature, or by the way that they are being Group; (2) Helping vulnerable customers to be included in marketed and promoted, helping achieve inclusive growth. a fast-changing market-place: Teva Pharmaceuticals , Bank Hapoalim; and(3) Developing Goods and Services which Innovative products and services are a major driver of are more sustainable: Elbit, Impact First Investments. economic growth in the 21st century. Many aspects of life have been, and still are, deeply affected by businesses PROACTIVELY HELPING CUSTOMERS LIVE introducing and marketing new products and technologies, A BETTER LIFE such as communication, transportation, access to knowledge, access to healthcare, work, food and health, smart homes Clalit Health Services and smart cities, and much more. Many, if not most, of these Israelis have benefited from the universal health coverage innovative products and services considerably improve enacted in 1995 following the National Health Insurance peoples' quality of life and advance inclusion. Law (NHIL), and they are in comparatively good health: for example, Israel has a relatively high life expectancy at Israel has one of the most compelling stories in terms birth (82.5 years) – among the highest in the world – and of introducing a product that changes peoples' lives – low infant mortality (3.1 per thousand births) – among the the story of drip irrigation that changed the way that lowest in the world.113 agriculture can flourish with limited amounts of water, as the slogan that the company Netafim is known for, says: 112 However, the same report points out that there are signs "grow more with less". A second and more social aspect today that the relative health status of Israel’s population of the drip irrigation is its impact on inclusive growth in may deteriorate in the future, as a result of rising tension rural communities and developing countries. When drip between medical needs and resources that stems from irrigation systems are installed, members of the community, state policy or, rather, a lack thereof. 114 in many cases women, have much more time to develop and invest in themselves and the community, because they Clalit is the oldest health services provider in Israel, can spend far less time fetching water. founded in 1911 by 150 immigrant workers as a healthcare association. Clalit has since developed into the largest It is therefore intriguing to see if this spirit of innovation is health care establishment in Israel, with 14 general and manifested in products and services that have an impact special care hospitals and over 1,200 clinics, as well as a on inclusive growth in the context of a developed economy. vast countrywide network of pharmacies, dental clinics, This chapter will showcase some of those examples which laboratories, diagnostic imaging and specialist centres. all reflect the challenge of walking the fine lines between Clalit also has the most insured members in Israel, with a pure business benefit and offering better products and over four million members, around 50% of the current services to the public, versus fundamental and disruptive Israeli population, encompassing all ethnic, religious new products and services that answer the challenges of and other population groups in the country. Clalit is inclusive growth. Although it is hard to find as compelling one of the largest employers in Israel, with over 35,000 an example as the drip irrigation, this chapter includes employees, including physicians, nurses, pharmacists,

84 - Leaving No One Behind paramedics and laboratory/imaging technicians and Tyto is not meant to replace existing medical services, administrative personnel.115 but rather complement them, so that people who are less digitally-oriented can still receive medical and health The budget constraints of the health system in Israel are no services at the clinics. stranger to Clalit, and there is a constant effort to provide higher standards of service while keeping the costs in mind. Key take-aways: An example of how Clalit is meeting both those needs is the introduction of Tyto.116 Tyto is a small device that enables A case of “innovation for good” answering both a certain medical examinations to be done out of the clinic, business need and a social one and poses a new at home or elsewhere. The device is linked to a telephone paradigm to issues of rising costs and access to app through which the patients are virtually connected with medical treatment. the physician and can provide essential medical indicators. The patient can be at home, in the office, or on a vacation without depending on opening hours of medical clinics. Challenge: in many cases those who suffer The examinations available with Tyto include nose, ear from low access to health services (elderly, and throat, lungs and heart (stethoscope), blood pressure rural communities etc.) are also less digitally orientated. and infrared thermometer. All examinations are recorded In order to reach a higher impact, inclusivity wise, there and added to the patient's medical file. The device uses a will be a need to accompany the service with education camera for both video and stills. The device has received all programmes to those communities. required approvals, including the FDA approval in the USA, and is already in use in Israel. Unilever Israel Tyto is an innovative product, Unilever is a multi-national consumer goods company with completely changing the service, hundreds of brands. On any given day, 2.5 billion people experience and relationship use Unilever products.117 Unilever runs operations in 190 countries, with over 160,000 employees globally. Unilever's between doctors and patients, operations in Israel include five manufacturing sites, and is a good example of how marketing and distribution, as well as innovation and R&D centres. Unilever employs some 2,500 employees in Israel. innovative technologies might Unilever Israel recognized two growing trends in grocery actually improve service to shopping: 1. Customers are shopping more online for their groceries. 2. Customers are going back to buying from small, patients while at the same time local grocers, as opposed to the previous trend of buying reduce costs for the health system mainly at large grocers and giant supermarket chains. and the public, thereby making Unilever recognized the potential advantage that small health services more inclusive. grocers can have in the arena of online grocery shopping - while large supermarket chains can deliver the costumer's Furthermore, it makes medical and health services more order within a day or two, the local grocers can deliver the accessible to all parts of society, especially in a geographic same day of the order. However, the local grocers lack the periphery where health services are less available in capacity and resources to set up their own website for comparison with major population centres. An additional online shopping. Unilever recognized this as a business health benefit is the reduction of the risk of getting opportunity from which the local customers would benefit, contagious diseases from other patients at the clinic. the grocers – i.e. the suppliers – would benefit thanks to

Leaving No One Behind - 85 PART TWO Chapter 7 | MARKETPLACE: PRODUCTS AND SERVICES PILLAR the increase in orders and sales, and Unilever itself would their face in the forefront, while Unilever remains behind benefit as the facilitator of the online commerce between the scenes and is not apparent on the website. There are customers and local grocers. other platforms competing in Israel with Shopo, offering speedy deliveries. Though these others tend to have one Unilever Israel partnered with Self Point, a digital commerce main website and the local grocers serve more as logistical start-up company near Tel Aviv, to develop the digital centres, and the orders are done on the facilitating platform solution. Together, they developed company's website. Shopo, on the other hand, offers a personalized website for each grocer, thus ensuring that they maintain their engagement with customers, their local Shopo, an online platform standing and business character. Essentially, the advantage for grocery shopping from of Shopo is about relationship building between the small individual businesses and the consumers. small, local grocers in the neighbourhood. The advantage for the consumer when buying in a Shopo store is the quality of the collection and the attention to the small details (product expiry date, quality of the fresh Small grocers can open their own website within Shopo at products such as fruits and vegetables, etc.) and the level a fairly low cost. However, this is only part of the solution of reliability the customer has when buying from the local because providing a platform does not ensure that the grocer as opposed to the big supermarkets. grocers will succeed in making use of it and benefitting their business, as several lack the know-how in terms of Unilever's immediate benefits from Shopo are more online platforms of e-commerce. Unilever recognized this advertising space and increased accurate data on sales early on, and created a Shopo Academy, guiding the small of Unilever products. Shopo will also produce revenue for grocers through the process of setting up their website Unilever, and increase its market share in online shopping. and using it for online sales. The Shopo Academy also Unilever found that not only is it increasing its market share, teaches participating grocers how to run a digital marketing but actually growing the entire market of online shopping. As campaign, how to use the data collected through Shopo to Unilever Israel CEO Anat Gabriel explained: “Shopo promotes create data-driven marketing, and much more. Unilever as a partner of choice and also gives it valuable new consumer insights.” 118 Unilever also benefits by scaling up its Unilever found that many grocers were providing an order own capabilities and adapting itself to the digital revolution and delivery service prior to joining Shopo, traditionally underway. Internationally, Unilever personnel talk about the by phone orders. There are two main advantages to the three eras of FMCG (Fast-Moving Consumer Goods) from business in using Shopo: 1. Customers tend to buy more the Advertising Age to the Retail Age to the Digital Age. 119 when shopping online. 2. The work of receiving, collecting, checking and delivering the orders is much more efficient Shopo has been operating for over a year, and currently with Shopo, saving the small grocers precious time and includes over 20 stores throughout the country, both in human resources. central Israel as well as more rural and peripheral areas, where its impact on quality of life and capacity building Part of shopping locally is the feeling of familiarity near of small business owners is even greater. In addition, home. In order to maintain that as best as possible with consumers in big cities have far more options to choose Shopo, each local grocer's website has their store and from, whereas rural areas have very few options. Shopo

86 - Leaving No One Behind also aims to reach all segments of society, and currently person bringing something physically, they can add it to the some of its most successful shops are in the Arab sector communal list at the local grocer and the total order will and the religious ultra-orthodox sector. eventually be delivered to the event venue.

One of the stores that joined Shopo was owned by two Shopo contributes to Inclusive Growth by empowering partners. Unilever engaged them with a marketing plan on small businesses to become more resilient and expand Facebook and other social media, and they immediately their operations. shook their heads and said “no, we have to do the proper way and go door to door handing out flyers.” Eventually, Key take-aways: the Shopo team taught them how to use Facebook, how to answer customers comments and questions. Two months Might be seen as an interesting manifestation later their orders increased from 30 to 260! Every small of “Glocalism” - a global corporate leverages its grocer has its own unique story. Many are family owned advantages to continue to grow but also boost the businesses, with parents and children working alongside players in the local market and help them grow in each other. When engaged by Shopo, the generational capacity and eventually business success. gaps are quite evident, and this is one of the main challenges that Shopo needs to overcome, as it guides the businesses through the entire process. Challenge: As Unilever points out, the challenges are expanding to other less served markets in Unilever tries to ensure transparency with the small terms of retail coverage. A particularly interesting point is the businesses throughout the process. In its presentation to potential social impact on communities if Shopo succeeds potential businesses to join, Unilever includes a slide on in adding a social network feature to the design. how it, as a large global company, will benefit from Shopo and from the store joining the platform. IBI Investment House Shopo is entering a new market in Israel, and this comes with IBI Investment House was founded in 1971, and specializes challenges as well, such as the generational gaps mentioned in portfolio management, alternative investment funds above. Another major challenge relates to marketing. Shopo – including a fund for responsible investing. IBI manages is Unilever's first brand that is not a product, but rather a assets at a total of around 48 billion NIS (around $13.5 billion). service, and it requires a different method of marketing. IBI employs around 350 employees and has been listed on Shopo itself has essentially proliferated into several brands, the Tel Aviv Stock Exchange since 1984. Most of IBI's financial i.e. each individual grocer on Shopo, and that is also a services and portfolio management are for high net worth challenge for the Shopo team, as each store has different individuals with over 4 million NIS in liquid assets. (USD 1.15m) needs and requirements in terms of marketing. Poalim IBI, an IBI subsidiary jointly owned by IBI and Bank Unilever has been quite proactive about recruiting new Hapoalim, is one of Israel's leading underwriting firms, businesses, using its sales department (Shopo is part of helping companies with the IPO process and with capital the Customer Development Unit) representatives going raising. In a joint venture with Headstart, Israel's leading around to stores that are potential candidates. One of the crowdfunding platform for creative projects and ventures, ideas for further development of Shopo in the future is they have set up Fundit: an online investment platform to add in a community feature, for events where multiple created to raise capital for businesses. Fundit’s interactive participants are required to contribute something for a platform enables companies and business entrepreneurs joint meal. For instance, it could be a community, a school in any field to raise money from the public in exchange for or even a congregation shopping list. It could be a list for equity or bonds.120 Fundit is an equities trading platform an event, a party or a holiday gathering. Instead of each that brings the entrepreneur and retail investor together,

Leaving No One Behind - 87 PART TWO Chapter 7 | MARKETPLACE: PRODUCTS AND SERVICES PILLAR with minimal brokerage and maximum exposure.121 Thus Today they have expanded to around 30 women and Fundit is a crowd investment platform, with potential return require higher funding to establish as a social start-up. on investment, as opposed to the more widespread model Fundit is able to provide a solution precisely for small-scale of crowdfunding projects for non-profits and philanthropy. ventures such as the cleaners' cooperative, which cannot rely on philanthropic fundraising. Fundit became possible with new regulation allowing crowd funding for investments that was passed in Fundit has three aims: 1. To make it easy for the small-scale January 2018. Fundit has a dual positive impact: 1. it retail investor. 2. To protect the small investors from losing provides entrepreneurs and small businesses, with an their shares. 3. To avoid having too much bureaucracy and opportunity to raise funds for their projects. 2. It provides legal obligation on the platform itself. an opportunity for average, middle-class people to partake in the world of investments without having to As for due diligence, Fundit requires that there be an allocate large sums of liquid assets. experienced investor with credentials, who is otherwise not involved with the business, and is required to hold Fundit limits the amount of money each individual can 10% or more of the original investment. In some cases, invest, to 10,000 NIS ($2828) per project, and 100,000 NIS the Fundit team may do some due diligence, as Israel is a ($28,280) in total per year. This is designed to protect small small country and it is not too difficult to find someone who scale investors from ‘losing their shirts.’ knows someone connected to the project seeking finance and so make a connection to the business seeking to join the Fundit platform. This form of due diligence obviously has no legal obligations, but may suffice in some cases.

In order to get businesses to use Fundit, IBI relies on community organizers, social workers and local connectors to introduce relevant micro-businesses, co-ops etc. to the platform. Fundit profits comes from charging a percentage of every transaction from companies using the platform.

Fundit is helping to promote Inclusive Growth by helping micro-businesses and co-operatives being started by people from marginalized communities to be able to raise modest financing. This ensures these enterprises can start and develop their businesses with adequate finance. , This One example of a company that raised funds through helps reduce the risks that otherwise viable businesses fail Fundit is a cooperative business of Arab cleaning ladies because of cash-flow problems – a besetting challenge for from Wadi Ara in northern Israel. In the beginning they entrepreneurs across the world. This can be particularly raised money through Israel Venture Networks (IVN), damaging for businesses in marginalized communities. a venture philanthropy network of entrepreneurs, where the failure of one business from the community may business executives, venture capitalists, corporations and discourage other community members from even trying to philanthropists from Israel and the US. This initial funding launch their own business. was quite low and served to pay the women for their work.

88 - Leaving No One Behind Key take-aways: in 30 approved Food-Tech start-up initiatives. Strauss Group committed to fund around 40% of this investment. The service is simple, user-friendly and has a Entrepreneurs accepted to The Kitchen receive financial, good balance of opportunity and risk. technical and business support, an introduction to a global investor base and opportunities to engage potential Small scale investors can have the opportunity to investors in their initiatives. To date, 12 companies have grow their capital through early day investment. been welcomed to The Kitchen Food-Tech hub.

On the entrepreneurs’ side it seems equally As Jonathan Berger, CEO of The Kitchen has observed: accessible in setting up new businesses and also “The Kitchen is a builder of companies. We invest in social businesses. promising start-ups and help them break into global markets, and it is wonderful that Strauss’s partners such as PepsiCo, Danone and others can be part of the 122 Challenge: A track record of success will define the international breakthrough of these exciting ventures.” impact as well as the balance between “regular” businesses who have the option to choose their investors, The Kitchen is incubating new products, but it is also and those who without such a platform might not be able nurturing new businesses – some of which in time may to get the funding they need. become suppliers and/or business partners to Strauss. One of the first start-ups to go to market is Yofix Probiotics that develops and manufactures vegan & soy-free Strauss Group’s Kitchen fermented plant-based prebiotic & probiotic . The Although we are presenting the four pillars of Business first products ready-to-market are plant-based yogurt and Inclusive Growth as separate, in practice, many of the alternatives which will be followed by yogurt alternative examples quoted, span the boundaries between the pillars. drinks, desserts, frozen yogurts alternatives, ice-cream One obvious example of this boundary-spanning is The base and many more. Kitchen which is a food and food technology (FoodTech) business incubator, sponsored by Strauss Group in collaboration with the Israeli Innovation Authority.

Since 2014, Strauss, already introduced in chapter 5, has been investing and managing a Food-Tech incubator, The Kitchen, in partnership with the Israel Innovation Authority (IIA). The incubator is now home to 12 Food-Tech initiatives and attracts dozens of large industrial companies interested in breakthrough technology that will change the future of the food industry. These are the technologies Yofix plant-based food solutions developed at The Kitchen, that help produce safer food, reduce environmental Maala conference tour, 2017 impacts, develop alternatives to sugar or sodium or create alternative foods that address potential shortages of ingredients via agriculture due to land and water scarcity, Strauss’s support for The Kitchen can be seen as partly or meet new lifestyle preferences with alternatives to food supplementing internal R&D and partly a Strauss societal products derived from animals. Strauss’s collaboration with commitment: helping to encourage and support new the IIA was formalized in 2014, with Strauss Group and the FoodTech start-ups. As such, Kitchen would be eligible to IIA committing to investing up to $25 million over 8 years be presented under the Community Pillar too!

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Creating An Eco-System of Foodtech In 2012, Strauss started its Alpha Strauss FoodTech Key take-aways: Community in Israel, which aims to create a complete ecosystem in relevant technologies for the food industry. Inclusivity in the food sector is very much about Alpha Strauss links research institutes, researchers, inventors, helping consumers find what they need when they entrepreneurs, investors and food companies considering all have special dietary requirements. governmental regulation and available technological assets, to drive innovation in a collaborative way. The Kitchen, as a collaboration between Strauss and the government, offers a middle way to In 2019, Alpha Strauss and the develop commercial solutions to better nutrition. Kitchen hosted the seventh FoodTech conference in Challenge: The Kitchen is the first FoodTech hub in the country – and with a second one about to be Israel, attended by about 1,500 opened in the north of the country Israel hopes to become delegates from 30 countries, a global centre for FoodTech. offering the FoodTech startups HELPING VULNERABLE CUSTOMERS the opportunity to present their BECOME MORE INCLUDED IN RAPIDLY initiatives to a wide network CHANGING MARKETPLACE AND SOCIETY of potential investors and customers. Teva As previously introduced in Chapter 5, Teva is a global pharmaceutical company, established in Jerusalem in 1901 Inclusive Food Approach and based in Israel. As a food manufacturer, Strauss understands its role and responsibility to ensure its products are safe, not only for Teva has made a commitment to the UN Sustainable general consumption, but also for people with special Development Goals which include SDG3: Good health food needs, which includes those who have different & well-being. At the heart of SDG3 are the problems of forms of food intolerances such as those living with celiac Non-Communicable, chronic diseases and also challenges or allergies. in health care delivery and access to medicines. Teva is working to address patients with multiple chronic conditions Strauss started engaging more deeply with consumer and empowering them to self-manage their conditions and groups and the dialogue yielded significant insights that also for their health care providers to look at the patient helped the company make changes for the benefit of holistically rather than by individual diseases. Teva has, for consumers with special food requirements. Strauss example, recently launched Digihaler – a digital inhaler that decided to be inclusive in its approach, so even if the notifies the user when it is nearly empty; it gives weather market for certain products is relatively small, it strives to reports regarding pollution and allergens; and it sends data to give everyone a choice of products that are right for them. the patient's physician enabling them to monitor the patient's condition without having to meet in person frequently.

90 - Leaving No One Behind Several areas around the world suffer from limited access 3. Patient assistance programmes – in developed to healthcare services and medications. This is an issue economies such as the US and Europe, Teva has a system mainly in developing countries, but there are also many through which patients who need specific medications developed areas that have a major issue of access to and cannot afford them, can be vetted by third-party healthcare, such as the US. The limited access is due organizations and approved for assistance. Medications to various reasons, among them are low government are provided by pharma companies, and once a patient investment and support for healthcare; patients' lack of is approved for aid they can receive the medication. resources to purchase medications and low adherence to This system helps get specific specialty medications to healthcare protocols and procedures. vulnerable patients in developed economies.

Key take-aways:

Access to health is a major global issue in developing and developed countries. Pharma companies are expected to play their part. There is combined business case and social licence to operate benefit.

Teva’s global scope allows them to cooperate with an eco-system of global players. Access to healthcare and medicines is seen as a critical material issue for pharmaceutical companies.

Challenge: In an atmosphere of decreased trust in Teva promotes better access to healthcare in three main pharma companies especially concerning issues of channels: pricing and accessibility, programmes such as this one need 1. Product donations – Teva donates medications that are to scale up and reach as many patients as possible. near their expiration date (about a year before expiration) to charity organizations that pass the medications to vulnerable countries, communities and people who otherwise have limited access to such Bank Hapoalim medications. These could include countries in Africa where Established in 1921, Bank Hapoalim is today one of Israel's public healthcare is often limited or communities in the US two largest banks and is traded on the Tel Aviv Stock with many people that do not have a healthcare insurance, Exchange. It has operations in Europe, North America and who cannot afford medications. and as well, and employs over 12,000 employees. Bank Hapoalim is one of the leading companies 2. Global healthcare tenders - global health organizations, in Israel in terms of corporate responsibility, with a strong such as the World Health Organization (WHO) and UN focus on social issues. International Children's Emergency Fund (UNICEF) do tenders for targeted medicines in areas that suffer from As the world advances and becomes more digital, shortages or diseases. They purchase the medicines from companies need to adapt to the changing digital reality. For the companies that won the tender and deliver them banks, it means offering more digital and online services, directly to the areas in need, thus saving the end users thus significantly reducing the physical visits of customers significant costs by reducing the chain between production to their branch. This reality creates a sort of gap and consumption of the medications. Teva participates in such tenders.

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– on the one hand, customers (mentioned earlier in chapter5), and the Adler Institute, which specializes in guiding and educating people on are receiving much more services family related issues. For example, the workshop with the and carrying out transactions Adler Institute focuses among other issues on guiding on their own, digitally, with no parents on how to financially educate their children. need for a banker/ bank clerk’s intervention. On the other hand, customers don't have more extensive knowledge on banking and finances which they used to receive from bank staff when visiting the branch.

Bank Hapoalim realized that this gap needs to be closed, Bank Hapoalim's Financial Growth Center, visited during a Maala and the vast knowledge held at the bank needs to make its conference tour, 2017 way to the customers without them coming to the branch. The bank recognized that it will benefit from this, because The bank recognized the challenge to gain public trust in the digital era, the more knowledge the customers in the campus and the Centre for Financial Growth. The have, the better they will conduct their business with the bank, therefore, openly announced that, while these bank. And that will lead to more long-term sustainable platforms are initiated by Bank Hapoalim, they will not customers, with better knowledge of how to handle their engage in promoting and selling the bank's services to the personal finances. public. In addition, the bank worked with external parties to receive a stamp of approval on the quality and content The bank established the Financial Growth Centre as part delivered through these platforms. These have included of the Bank Hapoalim Campus which now offers services to endorsements from, amongst others, Prof. Zvi Eckstein, the public at large. The campus offers workshops all over head of the school of economics at the Interdisciplinary the country, on various different issues and topics. There Centre Herzlia (IDC) who is quoted in Chapter 2 above. are 21 different workshops to choose from: workshops on digital banking; on household finances and improving Bank Hapoalim has concluded that the way to better financial literacy; workshops for small businesses; attract the public to learn is by framing the learning as workshops for teenagers and young adults, and more. The guidance towards major stages in life, in which people activities are free of charge, and are open to the public would be more interested. The bank was surprised to see at large, to customers of all banks in Israel. Some of the that people were interested in these services pretty much workshops are carried out through strategic partnerships from the start. It reinforced the importance of collaborating with organizations and institutions such as: the Israeli with NGOs to gain public trust. The Centre for Financial Association of Community Centres, Pa'amonim – an NGO Growth was opened in March 2018, and by the end of the that guides and educates people on household finances year 6,500 people had already attended workshops.

92 - Leaving No One Behind In addition to the workshops, the bank set up a new sector collaboration is crucial to succeeding in tackling website, dedicated entirely to financial education. The the issue. Bank Hapoalim is not working alone, but rather website holds information, knowledge and training tools for collaborating with NGOs and municipalities to advance financial education, and does not promote the business financial literacy and educate the public at large. activities of the bank. The website was launched in Arabic as well, in order to expand its offering to a broader An employee survey within the bank showed that Bank public. There are also workshops in Arabic, and there Hapoalim employees feel proud of the Centre for Financial are extensive efforts to offer the services in English and Growth. This goes to show that such initiatives can have a Russian as well, thus catering the services to the majority of significant impact within the company as well as with the the population in Israel. broader public.

A third leg of the centre's operation focuses on Training the Key take-aways: Trainers. For example:

• Training volunteers of ELEM, an NGO that helps youth in An ultimate manifestation of a bank’s social distress: the Centre has developed a unique programme purpose combined with a business reason as well. in which the volunteers learn how to teach young people As was shown at the beginning of this chapter, the about household finances, and how to accompany them Israeli public expects a bank to help its customers throughout the year. As a result of the programme, the who are in financial difficulties. This is part of the volunteers who were trained by the Centre, have met answer. hundreds of young people, who are now much more aware of their financial status, and are growing to become much more responsible with their financial behaviour. Challenge: as people tend to be less open to traditional methods of learning (i.e. training • Training teachers on how to teach financial education sessions) the challenge is to use innovative ways such as in schools and other institutions. One of the successes gaming and “meeting people where they are at” to scale up with this was training 50 teachers from the Jewish Ultra- the educational impact. Orthodox (Haredi) schooling system, who would then teach Haredi children about household finance. This was SUSTAINABLE INNOVATION: DEVELOPING a major breakthrough, since the Haredi population has far GOODS AND SERVICES WHICH ARE MORE less core curriculum studies such as maths, English and SUSTAINABLE civics. And so getting them to learn financial education is significant.

• Offering scholarships to college students in peripheral Elbit Systems areas, such as southern Israel, to volunteer with families in Elbit is a hi-tech company producing advanced innovative financial hardship and help them handle their household military and civilian systems, products and technologies. finances. The students are trained by Pa'amonim. Among the main focuses of the company are: airborne technologies, including both military (aircraft and helicopter The bank plans to develop more services at the Centre for systems) and commercial aviation systems; cyber and Financial Growth and to fine-tune the existing ones. intelligence systems, and more. 123

One could argue that financial education should fall under Elbit has developed a business strategy of converting the auspices of the Ministry of Education and should not military products and technologies for civilian purposes, and be carried out by a commercial for-profit institution such currently has seven civilian subsidiary companies dedicated as a bank. But, as with so many other social issues, cross- to that.

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Examples include:

• Brightway Vision – developing technologies for Key take-aways: autonomous cars. Already has an agreement with B.M.W. Military and R&D investments could be powerful • Beyeonics – Developing Augmented Reality device to when they are transferred to civil usages. assist medical surgeons in the process of surgery.

• Everysight – Developed glasses with live information and Challenge: being a hybrid company in terms of lines data for bicycle riders. The technology is based on Elbit's of products to different segments both in terms of visors for air force pilots, which show data on the visor pricing and process. without the pilot having to constantly look at the dashboard.

Elbit is also converting technology for farming and IMPACT INVESTING: ISRAEL AS THE agriculture. In the US, Elbit has converted its Hermes FUTURE IMPACT TECH (STARTUP) NATION 450 unmanned aircraft system (UAS) to generate real- time data on crop conditions, to support improved crop Cecile Blilious has been described as “the mother of management. They worked with local farmers to gather Impact Investing in Israel”125 and is a global thought-leader and analyze data. Imagery from the UAS can help farmers in Impact Investing. In 2011, Blilious co-founded Impact understand and monitor real-time changes in field First Investments which is the pioneer platform combining variability throughout the season helping them with crop social impact with Israeli hi-tech.126 management for better farming efficiencies, increased yield and reduced labour investment. To date, such data has Blilious argues that Impact Investing in Israel is fifteen only been available via satellite at monthly intervals and years behind the world’s leaders, but catching up fast. much lower resolution. She also argues that the Israeli high-tech sector faces two big challenges in relation to Inclusive Growth in Israel. "The potential for beneficial use of drones First, high tech businesses have to be global from day one in civilian applications is tremendous. We in order to succeed. They have to appeal immediately to are already working on applications in crop an international market. Paradoxically, this may mean that agriculture and infrastructure support, and some of the fruits of Israeli innovation – particularly around we see many other areas of opportunity. In sustainability and social inclusion - may not always be agriculture, we are assessing what else farmers available in Israel itself. Secondly, it is not easy for people need. For example, cattle counting could be from poor backgrounds and minority groups to get jobs in handled by our Hermes 450. We are aware high tech – except for those who have graduated from the of potential challenges relating to reliability, elite IDF cyber units like Unit 8200. safety and privacy and expect that a regulatory framework will be developed to enable these Blilious is out to change this by seeking out and investing advanced applications to contribute to improving in start-ups with the aspiration and potential to grow the quality of life in many ways." sustainably and inclusively. Impact First became Israel’s first certified B-Corp in 2013,127 and expects Yuval Chaplin | Director of Major Campaigns, Elbit Systems its investees to go through B-Corp accreditation too. of America 124 The rationale is that in addition to Family Offices and

94 - Leaving No One Behind high net-worth individuals within Israel, Impact First is not created under the premise of addressing a specific seeking investments from impact investors internationally. social or environmental issue, have a desire to transition Blilious argues that in order to attract these international into impact by defining their impact mission and tracking investors, the company and its investees need to have new impact targets. an internationally recognised accreditation. Hence, the emphasis on B-Corp rather than a domestic model “For these companies,” writes blogger David Dwek, founder such as the Maala Basic Index for SMEs – although in of The Student Investor Blog, “the opportunities are vast: practice, participation and success in the Maala Basic discovering new market segments, attracting higher capital Index could be a gateway to the more onerous and and a more diverse talent pool, and aligning their values to comprehensive B-Corp accreditation in the future. Blilious the business by better engaging with stakeholders.” 130 also argues that because her investees will have to trade internationally from the get-go, again it helps for them to Dwek argues, quoting Impact First, “All that is required have achieved B-Corp status when pitching to potential for a start-up to transform into an impact startup is: (1) international business customers and collaborators.128 awareness about the UN’s SDGs and the impact investing Impact First has made nine investments so far. It operates ecosystem that can be translated into intentionality, and like a Venture Capital fund, providing not just finance but (2) help and advice from an expert or leader in the impact also advice and contacts, and serves on the board of space to guide them in determining how their product/ investee companies. It is expected that the first exits will service can be purposeful, defining their impact metrics, occur within the next two to three years – more likely as a and framing their impact mission.” 131 result of M&A (Mergers & Acquisitions) activity rather than through IPOs (Initial Public Offerings). Blilious herself is an evangelist for the potential that Israeli high tech has to improve access to health, education, Impact First is physically based in the offices of Pitango – better nutrition, clean water and irrigation around the Israel’s largest venture capital fund - in Herzliya which is an world, linked to the UN Sustainable Development Goals, affluent city in the central coast of Israel, at the northern but that it should also contribute to more Inclusive and part of the Tel Aviv District, known for its robust start-up Sustainable Growth in Israel too. She particularly highlights and entrepreneurial culture. Pitango provides back-office the opportunities in the Israeli food tech sector. functions for Impact First and Pitango executives form the Investment Committee for Impact First. Blilious’s vision is Amongst the first businesses that Impact First has that all investing will be impact investing and that before invested in, is EyeControl which creates wearable long all high-tech start-ups in Israel will be Impact Start- communication devices for locked-in patients and ICU Ups – but will not need a separate designation. patients at high risk of delirium. As often is the case, the passion behind the technology comes from the founders’ Blilious differentiates between impact natives and impact personal dilemmas. migrants. Impact natives are companies that are created under the premise of tackling a well-defined social/ Or Retzkin, one of the co-founders, met Shay Rishoni environmental problem. These companies are born out and Itai Kornberg at a hackathon. Shay suffered from ALS, of a desire to better the world by tackling specific global which hindered his ability to effectively communicate with challenges using impact-intentional business practices. caregivers and loved ones. Or bonded immediately with They generate more than just revenue; they cultivate him due to his grandmother Julie, who lost her ability to measurable social impact in areas such as HealthTech, communicate shortly after being diagnosed with ALS. Since AgTech, WaterTech, or EdTech.129 they all understood the magnitude of the physical and mental health challenges hindered communication creates By contrast, there are what Blilious calls the impact for over 10 million “locked-in” and at-risk delirium patients migrants, referring to those businesses that, although were worldwide, they set out to create EyeControl.

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Another business in the Impact First portfolio is CONCLUSION MedOrion, which offers an example of the Blilious impact As noted in the beginning of this chapter, there is a fine line migrant theory. Its founders, Asaf Kleinbort, Eviatar Khen, between business benefits and impact on inclusive growth. and Shai Levi, recognised a lack of effective personalised In the context of a developed market like Israel, it is even and all-encompassing population health marketing more challenging to create this “Shared Value.” The cases tools and saw a real business opportunity in building an presented in this chapter show some attempts to connect AI-powered platform to deal with the mass preventive the two. In order to actually understand the impact, more medicine market gap.132 time is needed as the initiatives develop and hopefully achieve that dual impact. Key take-aways: In the future, we expect companies to be looking at their Once again, Israeli innovators and entrepreneurs product/service portfolio and developing plans either are taking models from other parts of the world to make any unsustainable products more sustainable and giving them a distinctive Israeli twist. or progressively to phase them out or replace them. Companies may also become more proactive in developing There are myriad opportunities for both Impact products and services targeted more at particular minority Natives and Impact Migrants to develop profitable groups. Companies – especially those in high tech – will products and services which also tackle social and need to develop clear ethical criteria covering the use or environmental problems and contribute to more misuse of their products and services – for example, for Inclusive Growth. cyber and surveillance products.

As the essential duality of sustainability and inclusion Challenge: to apply the Impact First philosophy to becomes more widely understood and accepted, more mainstream venture capital sector. businesses will adopt Circular Economy thinking and tap into the resources of intermediaries such as the Ellen MacArthur Foundation (www.ellenmacarthurfoundation. org/) and the growing number of sector and issue-specific Corporate Sustainability coalitions such as the Sustainable Apparel Coalition and the Israel Green Building Coalition (www.Ilgbc.org). Businesses should also consider how more strategic Corporate Community Involvement could provide crucial insight for the development of new products and services.

Meantime, any business in Israel can consider this practical checklist for Marketplace activities.

96 - Leaving No One Behind PILLAR FOUNDATION DEVELOPMENT CHAMPION

Identify vulnerable customers Review product/service Add increasing inclusion as a core and ways to reduce their portfolio and identify any which “stage-gate” criteria for company’s vulnerability inadvertently increase social & innovation process and business economic exclusion and look to development modify or remove from portfolio

Encourage employees to become “social intrapreneurs” who champion creation of products and services which enhance Inclusive Growth

Link executive compensation to inclusive growth criteria relevant

GOODS & SERVICES for the company

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CHAPTER 8 | BUSINESS AND SOCIETY

INTRODUCTION As was described in previous chapters, social issues have Another relevant factor is the level of trust in Israeli always been the most dominant in Israeli CSR. The 2011 businesses over the years. While in 2014 the net trust in social unrest, referenced in the Preface (page 12) and businesses was -38.6% (net trust refers to the number mentioned also by various business leaders who were of people who trust minus the people who do not trust), interviewed for this publication, is perceived as a turning in 2019 it rose dramatically to +14%. The increase came point for Israeli businesses in terms of the relationship gradually, with each year showing a slightly better figure. In between business and society. This chapter will describe terms of the actual figure for Israelis who trust businesses, several case studies that demonstrate a new approach the number has risen from 25% in 2014 to 39% in 2019. to long term strategy that considers broader stakeholder It is also worth noting that in terms of net trust, Israeli needs and commits businesses to more inclusive businesses enjoy a much higher level of trust than the practices. This chapter also examines the evolution of government which scored -10% in 2019. philanthropic and community engagement approaches of Israeli businesses over the years. To further understand the connection between trust and business impact on inclusivity, the 2018 survey asked To understand how important inclusivity is in Israel, it is respondents what is most important to the improvement of worth looking at the GlobeScan-Maala survey of public quality of life. Two main issues dominated: minimizing costs expectations from businesses. The survey has been of products and services and reducing the tax burden. In conducted annually by Maala for the past six years since 2019, that was further developed to look into three specific 2014, in cooperation with, and based on, the global business sectors, banking, retail and food & beverage, and Globescan Radar questionnaire. (GlobeScan is a public explore what would increase consumers' trust in them. In opinion research consultancy that does reputation, brand, all three sectors, issues of fair pricing were the top priority, sustainability, engagement, and trends research. It is with direct references to inclusivity, such as in banks – headquartered in Toronto)133 expectation to assist costumers encountering financial difficulties, and in food – contribution to community On the question of the significant issues that the state of and non-profits, which reflects yet another prominent Israel faces, two main issues have constantly dominated characteristic of the Israeli society of the importance of the public discourse: security and socio-economic issues food security. referring specifically to inequality, social gaps and cost of living. In 2014, 40.6% of respondents mentioned security This is reflected in another question which asks the issues as the main issue, while 37.6% referred to social respondents how they would allocate a 100 NIS donation. economic issues as the main problem.134 The numbers The highest amount of 16 NIS went to food distribution have stayed pretty much the same throughout the years. In for the needy and summing up social causes that refer to 2019, 35% referred to security and 29% to socio-economic inclusivity and helping those in need, the amount adds up issues.135 to 62 NIS.

98 - Leaving No One Behind Which causes would you donate to? How would you distribute NIS 100?

Source: Maala-GlobeScan Radar (2019)

Like businesses elsewhere, companies in Israel are a fundamental factor in long-term value-creation. Strauss supporting communities and social causes through declares that it strives to be a trustworthy company and the provision of cash, company and personal time of considers this as being at the heart of its business strategy. employees, expertise, facilities, linking to core business This is based on the understanding that being perceived operations; and also individually & collaboratively with other as trustworthy can become a competitive advantage. businesses, advocating for social and economic inclusion. Following much research, study and debate, the company This chapter will start with the practice of responding has developed the view that trust is based on three to the trust crisis, (Strauss Group, Bank Hapoalim); to main dimensions: leadership, culture and governance. be followed by case studies showing how businesses This has been followed by the decision of the executive are Promoting Inclusive Growth through Corporate management to place the goal of being a trustworthy Community Involvement: Intel, ICL; Improving Education company at the heart of their business philosophy. (5x2 Collective Impact Initiative from High Tech Sector); The company has accelerated a systematic process to better management of failing schools; Helping Youth at Risk understand what behaviours inspire trust. This includes (Bank Leumi and Youth at Risk, SAP’s Social hack-a-thons genuinely listening to stakeholders in both formal and and help for people with disabilities); and how fast-growing informal contexts. The work is pulled together under the technology start-ups are getting involved: Tmura – The Strauss Trust Barometer / Survey and considered an Israeli Public Service Venture Fund. ongoing and fundamental commitment.

RESPONDING TO THE “TRUST CRISIS”

Strauss Group – Being Trustworthy as a source of competitive advantage As was noted in previous chapters, the 2011 social protest in Israel was perceived by Strauss as a big wake-up call to engage more with its stakeholders and look at trust as

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Osnat Golan, VP Corporate Communications & down wherever possible through passing on the benefits Sustainability, noted: “We would love to say there is a quick of operational efficiencies and investments in advanced fix to building trust. That would make everything easier. technology. But there isn’t. The expectations of our stakeholders are increasing and, in order to remain trustworthy, we must During the past 8 years Strauss have not raised food prices constantly adapt ourselves to every day’s new reality. In this in Israel and even have reduced the prices of several foods. way, trust is created every day anew, decision by decision, action by action, reaction by reaction, influencing whether we gain trust or lose it. Underlying these decisions, actions Strauss Trust Survey and reactions must be a deep empathy and understanding Since 2015, Strauss has annually engaged with a range of for those whose trust we must earn. At Strauss Group, we key stakeholders, seeking to understand their expectations, have made it our mission to understand what creates trust, concerns and perspectives about issues that affect them so that we can respond by being trustworthy.”136 in relation to health and nutrition, food, food companies, the cost of living and other socio-economic conditions. It has also included feedback on the conduct of Strauss Pricing and how the company meets stakeholders’ needs. Strauss Strauss addresses the important message received from commissioned an independent firm to conduct this its consumers in Israel through direct feedback and also research. In 2018 the approach was updated and focused through the Strauss Trust Survey, that the cost of living is on stakeholders’ attitudes to trust, specifically to know challenging, and the cost of food in particular is a cause what the company needs to do to earn their trust. The of stress. This was a message that came through loud and survey was expanded to include additional groups, such clear in the social protests in Israel in 2011. as consumer segments from different backgrounds. This is now the Strauss Trust Survey. This is arguably the most extensive outreach by any consumer-facing company in Israel right now.

The company reports that: "receiving the direct, unedited, unfiltered views of all these groups, who have the power to grant our Social License to Operate, or not, is a bold step for our leadership and our managers. We believe this is one of the most important game-changing processes for our company, and we are using the insights from our Trust Survey to fuel deep discussion at senior management levels and inform our strategy and actions." 137 Since then, Strauss Group has publicly undertaken to stem the increase of food prices and drive food prices

100 - Leaving No One Behind The outreach of Strauss's Trust survey in 2018:

Strauss Trus Survey outreach. Strauss Sustainability Report 2018. p. 9

Major findings on what inspires trust in food companies in 3. Helping me - Ultimately, everyone understands that Israel include: they have to look out for themselves. So, their expectation of companies is that they will help them do just that by 1. Transformational leadership - The company must be providing the information, products, tools, guidance and seen to be driving change, being a pioneer in the market, frameworks so that they can make informed decisions in the first to bring new technologies and innovations that the best way. Companies should aim to help all players benefit the consumer and advance healthy lifestyles. This in the value chain inclusively, for example, this means is not only about products, it is also about creating new addressing the needs of consumers who have special and inspiring goals. Employees want to work for a company health or religious food requirements, or the needs of small that has a shared and unifying purpose – as Larry Fink, the retailers in the market. CEO of BlackRock – the world’s largest institutional investor – has noted in his increasingly urgent annual letters to 4. Fairness: win-win - Companies must balance commercial corporate CEOs of companies in which BlackRock invests. interests with those of all others in the value chain – consumers, retailers, farmers, employees and others. There 2. Responsible conduct and transparency - Responsibility must be a win for everyone, not just for the company and transparency go together. Consumers want profitability. Products must be healthy AND priced fairly. information about things that affect them; to know Employees must receive fair and competitive compensation that the company conducts its business ethically and in ALL roles, not just management. The key is exercising responsibly, especially in areas that affect them. For each reasonable balance so that everyone can benefit. group, the focus may be different – consumers relate more to products, employees relate more to employment 5. Openness and familiarity - A company should not be a conditions and equal development opportunities, the black hole- there need to be names and faces that people media places focus on how the company communicates can see and relate to and trust. There should be accessibility on difficult issues or in crisis situations and investors want to the company leadership, its factories and technologies. clear financial reporting. Israeli companies in Israel are expected to understand and

Leaving No One Behind - 101 PART TWO Chapter 8 | BUSINESS AND SOCIETY connect to the local heritage and culture. Inside the company, Bank Hapoalim Focus on Stakeholders there should be an open-door policy at all levels and no Bank Hapoalim (already introduced in Chapter 7) is barriers to communication or silos between departments. yet another example of the fundamental shift in major businesses in Israel following the 2011 social protests. 6. Sustainability and solidarity - Companies are expected Although they had had extensive activity around responsible to exercise care and concern for all those affected by their business and community engagement, they decided to take business. This includes consideration of local communities things to a new level in January 2016. Specifically, the bank and supporting social causes. It is also an expectation formed a stakeholder division headed by an executive vice that companies will be stewards of the environment and president who is part of the bank's board of management. minimize harm. Animals should be respected and cared This was based on a profound understanding of the need to for. The business should consider and care for all people, move the dialogue from shareholders to stakeholders. animals and natural resources in its sphere of influence. Banks, globally, were never the most popular business organization to begin with. The 2008 economic recession Key take-aways: was a major turning point, both globally and locally. It got big business to think something has to change. In Israel it Strauss was one of the first companies to join became even stronger in 2011 following the social protests. the then new responsible business community The 2011 unrest wasn’t directly against banks: it was that was formally created in Israel in 1998 with the more largely against government and food companies. establishment of Maala, and was the first Israeli Nevertheless, there was a feeling that something had shifted. company to prepare a CSR report (eventually, however, this report was not published as the company underwent a major merger process). Consumers and citizens expected different behaviour By taking on the trust issue in this thorough and understanding on the part 360-degree way, the company again sets a high standard. of business. The bank noted that this kind of a change cannot It also reflects the company's willingness to be engaged in a constantly evolving process, and to happen without deepening feel comfortable with saying that “we are better off its understanding on what the than where we started, but we haven't arrived yet to where we need to be." new needs and expectations of stakeholders are.

Challenge: Trust is a very illusive and complex The events of 2008 and 2011 left businesses in Israel feeling notion to manage which requires constant like the rules have changed. attention, evolving forms of engagement, and widening the span of communities to engage with. The current head of the stakeholder division, Yael Dromi, came from outside of the bank, having been a senior editor of one of Israel's leading financial newspapers.

102 - Leaving No One Behind Dromi brought with her an outsider’s perspective - much by small businesses and private clients. Obviously, not all needed in an organization most of whose employees and concerns can be answered, but the process in itself is managers have been with it for years. It has changed the taken very seriously: "You can never meet expectations, but conversation according to Dromi: “the customer now has a just having dialogue and meeting somewhere in the middle place in the board of management.” is valuable. We at the stakeholder division don’t have the answers, but our job is to think about it. In fact, we have 100 One example of the benefits of having a stakeholder division people dedicated to cracking it."139 point of view at the management table, is the ability to respond to the challenge that banks in Israel and globally are The stakeholder division believes that its work has to be experiencing with closing physical branches as they go digital. connected to the business strategy and goals. This leads its Bank Hapoalim can testify to the significance of this issue operations in three main areas:140 to its stakeholders: while 80% of costumers demand digital services and visit physical branches much less frequently, 1. Representing the voice of stakeholders at the bank, while those that do, notably senior citizens, are very much affected reflecting gaps and public responses to the bank’s actions. by it. The traditional process of closing branches didn’t work; 2. Leading and initiating measures aimed at strengthening in some places it created outrage that the bank didn’t know trust and relationships with the various stakeholders, with a how to handle at first. In early 2019, when a certain closure of focus on dialogue, fairness, and added value. a branch had reached national headlines, management called in the stakeholder division to take charge. In that particular 3. Leading and initiating processes and actions aimed case the decision was reversed, but a more comprehensive at generating shared value to benefit all stakeholders, in outcome was a whole new process of closing branches collaboration with the various areas of the bank. formulated by the stakeholder division: "You have to first talk to the community, understand their needs, see if there are The stakeholder division includes the following units within other branches locally they can go to. You have to see if you it: the Social Banking Centre, Social Networks, the Customer have enough ATM’s. You have to do it through dialogue and Insight Centre, the Ombudsman, Poalim Volunteers, the understand that it could be a lengthy one."138 Poalim Campus, and the Financial Growth Centre.

Another step taken is to boost digital training in Hapoalim staff are trained now in stakeholder engagement: neighbourhoods and cities with a large population of “We talk to our employees in our training centre about older customers. The investment in training is perceived integrity, values, fairness, about customers. We see the to have a good return. Namely, on taking away one source stakeholder conception as part of the training.” of opposition from bank closures; increasing trust with regulators who are in charge of making sure all citizens have access to banking services; and showcasing the Key take-aways: linkage between community investment and the bank's core responsibilities. It is also a manifestation of the bank's The bold move of the bank in forming the commitment to serve marginalized communities as well. In stakeholder division is highly regarded by many short, the bank sees this effort as good for the business, professionals in and outside of Israel. the bank’s values, the customers, and its reputation. The bank is happy to share its work and progress The division runs an ongoing dialogue process with with partners and competitors alike. various stakeholders. The outcomes of this dialogue are presented six times a year to the management board. Senior management has to listen to issues relating to Challenge: Stakeholder management requires poor ratings that the bank receives on various issues from alertness, vigilance, openness and mediation in transparency to what could seem as minor issues raised order to keep both business and stakeholders in sync.

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PROMOTING INCLUSIVE GROWTH In the context of “Innovating Together”, the addition of the THROUGH CORPORATE COMMUNITY digital dimension from digital place-making has opened the INVESTMENT door for Intel to introduce its greatest asset – technology and technologists – into social projects. Technology is incorporated not only in the design and development Intel Israel of intervention in the public space but also into ongoing “Innovating Together”: Intel Israel's innovative community processes that blend creation, education and technology engagement programme. in active citizen engagement before and after the setup of the facility. Over the past few years. Intel’s community relations have been placing a stronger emphasis on partnering with “Innovating Together” is a programme where Intel works the towns and communities where Intel is located whilst with the municipalities and communities in which its exploring ways to become involved in the social challenges campuses are located on making the city’s public these towns and communities are grappling with, as spaces more inviting, dynamic and attractive with Intel’s demonstrated in the public spaces. technologies.” said Revital Bitan, Intel Israel CSR manger. She added “Under this initiative, A more profound look into towns and their public spaces shows that towns are becoming a mix of physical Intel primarily leverages its and virtual spaces where the physical can hardly be resources and creativity to distinguished from the digital. Successful transformations in the public space should not be limited to the space’s address a range of challenges to social and material dimensions but also the digital ones. In quality of life which are important addition, as IT technologies become increasingly mobile and people remain connected also when they are in the for the communities in which it public space, the attention often toggles between the operates. physical and virtual worlds. Digital Placemaking processes deal exactly with this duality. The programme emphasizes the connection of people, community and technology in the urban space”. Digital Placemaking is the digital evolution of Placemaking, a joint process undertaken by a community, its municipality The joint work is carried out by Intel, municipality and professional parties to design their public space. and community representatives as well as additional Placemaking projects are implemented to generate social, professionals such as engineers, designers and other cultural, environmental and economic value. creatives. Since one of the programme’s goals is also to increase Intel’s exposure to the community for the longer The addition of the digital dimension fundamentally term and establish ongoing relationships, the activity in transforms the way public space can be experienced, each community is not limited only to building a beautiful expands the toolbox that can be used for Placemaking technological facility but rather emphasize the joint work and creates opportunities for connecting with new target processes and the creativity, learning and special use audiences and reinforce their affinity to a certain location. of technology they involve in order to encourage active At the same time, it provides an opportunity for imparting residents’ engagement before and after the technological knowledge, tools and 21st century skills to the citizens. project is completed.

104 - Leaving No One Behind The Programme has been implemented for the past to specific pace) and is played while running around it. The three years in three sites in Israel: Kiryat Gat, Haifa and facility – which is the largest “Simon” facility in the world – Jerusalem. This year will see its expansion into a fourth site, was voted by the citizens out of 16 ideas proposed by the Petach Tikva. Innovators Community made up of Intel employees. It has become the de facto most exciting fitness facility of Kiryat Gat.

Case study: the Shoftim park in Kiryat Gat In addition to providing the technology for the apparatus, Kiryt Gat is a city in the southern part of Israel. It lies 56 km Intel has promoted activities with a range of community (35 miles) south of Tel Aviv. groups to increase their engagement with the Park and “Innovating Together: the Shoftim Park” was an initiative its surrounding and strengthen their bond with Intel. pioneered by Intel Kiryat Gat and the local municipality, Examples include public activities around technologies and which aimed at transforming the Shoftim Park into a renovation ventures carried out by citizens, artists and Intel dynamic, safe and attractive place for citizens and visitors volunteers to beautify the public space. through creativity and technology in collaboration with the community. This initiative added to an even broader effort championed by the municipality at the Park, which involved renovating The Shoftim Park was chosen by the municipality since it large parts of it to make it more inviting for families. is located amidst several neighbourhoods with different The Project has already led to increased use of the park socio-economic characteristics and is a crossroads for by residents, pupils and the elderly. A satisfaction survey many people. The Park is surrounded by many educational found that the citizens are very happy with the investment and community institutions: an elementary school, two in improving their quality of life. high schools (one religious and one secular), two after- school clubs, two synagogues, one Mikveh (bath for ritual Amongst the community-bonding activities that have immersion), a youth learning centre, and more. resulted from the programme are:

• Intel volunteers collaborated with the Kiryat Gat learning In recent years, the Park has lost its appeal, becoming a centre for youth at risk in building an artistic installation to deserted and unattractive venue during daytime and a hub enhance the Learning Centre. of crime and vandalism during night-time. For this reason, it was decided to establish a centre that would attract families • Intel factory management collaborated with the after- for fun community activities in the hope it would drive away school clubs Eylon, Ibtzen and Margalit in building bicycles the petty criminals and return the park to the citizens. in collaboration with the NGO “Cycling Together”. The newly built bicycles were given to the clubs’ children to provide The vision was to attract more people, from a range of them with a basic childhood experience which most of social and age groups to spend time at the park, interact them lack. Volunteering promotes a healthy, green lifestyle with one another, hold family gatherings, play and feel safe. and is closely aligned with the “Innovating Together @ This in turn, was also meant to promote greater pride in Shoftim Park” venture. their community and town. In this way, Intel was going to • An innovation lab was opened in cooperation with make a significant contribution by responding in new ways the Kiryat Gat Youth Centre. It targets young start-up to specific needs and challenges of the community, in the entrepreneurs in the community and gives them access to places that are important for them and with a new “place Intel technologies in particular and to technological tools in experience” augmented with technology. general so they can develop their ideas.

The project involved the construction of an interactive, • Different community groups (children, youth, the elderly, technology-based game facility, a giant “Simon” facility that and families) are trained on using the “Simon” game as part follows the rules of the old game (press colours according of more active lifestyles.

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• Digital creativity workshops are offered to citizens ICL is currently a global leader in controlled release fertilizers and youth. The resulting works reflect their personal that enhance nutrient efficiency and minimize leaching and perspective on the Park “where you get to meet everyone”. volatilization into the environment. These products enable growers around the world to reduce fertilizer usage and simultaneously achieve higher quality crops and yields with a Key take-aways: lower environmental impact.145

An innovative approach demonstrating that In Israel, ICL sees itself as an inseparable part of life in the building the programme through community communities in the Negev (southern Israel), where most engagement rather than pre – planning spreads of its plants are located and where most of its employees the impact. live. The company believes that community involvement and encouragement of dialogue related to sustainable There are a number of dimensions coming development are among its responsibilities to employees together here: digital orientation and citizenship, and other stakeholders. The company encourages its community engagement, place making and employees and managers to take an active part in weekly empowerment. voluntary work. Personal volunteering is usually conducted in the afternoons (not during working hours) in educational, Challenge: such a programme requires high society and environmental organizations. In 2018, 14% of its involvement of the company’s community team employees in Israel participated in volunteering activities. and an ongoing effort to engage with various The total time spent volunteering by employees was nearly groups versus the more familiar model of working with 19,000 hours, or 4 hours on average employee.146 representatives and established organizations. ICL has several projects and initiatives with the community. The company's flagship social project is called Thinking ICL Doing, launched in 2014:147 One of the key global market players in the agriculture, food, and fertilizers industry,141 ICL is a global company ICL’s primary mission, as a key player in leading change whose products meet the basic trends and key needs of in the quality of life of communities in the Negev, is to world development and population growth. Its strategy motivate collaborative processes in the establishment of focuses on realizing the growth potential of innovative a sustainable community network, that in turn creates and agriculture solutions142; and on enhancing its long-standing motivates regional processes through partnerships and market leadership across its three core mineral value empowerment of local initiatives. The programme aspires to chains of bromine, potash, and phosphate.143 ICL is a public ensure community resilience and to improve quality of life in company whose shares are dual-listed on the New York the Negev region. Stock Exchange and the Tel Aviv Stock Exchange. ICL has global operations with mining and production sites in Israel, The programme creates a regional network of local Europe, North and South America, and China; employing entrepreneurs, who have both the ability and desire to approximately 13,000 people worldwide. ICL produces contribute to the local community, and to the entire Negev approximately one third of the world’s bromine, and a sixth region. It promotes close cooperation with municipal of the world’s potash, and is a leading global provider of pure authorities and allows for the pooling of resources to improve phosphoric acid.144 the physical and social conditions made available to residents.

106 - Leaving No One Behind Local residents choose areas • Creating young leadership, through scholarships for students, playing a key role in Thinking Doing projects. in which they wish to promote an initiative related to education The Thinking Doing programme began as a pilot project in the town of Yeruham and has been in operation there and community, public spaces since 2014. A regional network of local social entrepreneurs and creating communal was created, possessing the ability and the desire to contribute to the local community and to the entire Negev infrastructure, local economy, region. Together with residents of Yeruham and the town’s and environmental issues. The local leadership, and by connecting with the town’s agenda local entrepreneurs connect and the head of local council's vision for sustainability, the programme supports social and environmental initiatives of local residents to the initiative in local residents, thereby aiding in rebranding Yeruham as a order to make a notable social sustainability fostering town. impact. Following two years of operation, a local coordinator was appointed on behalf of ICL and the local Council, who is ICL provides professional and economic support to different responsible for leading sustainability issues in Yeruham in initiatives in the Negev region. In addition, its employees general and for the implementation of the Thinking Doing volunteer in the various community projects. programme in particular.

The company acts as a catalyst to motivate processes that The connections and partnerships between various will create a joint effort of business, the environment and the organizations in the town, as well as empowering social community to strengthen the Negev. entrepreneurs and motivating partnership processes, have served to create social empowerment and self- During the development process of this project, local esteem, in addition to transforming the public realm residents select areas in which they wish to focus their into a ‘warm home’ for the town’s diverse population. activities, and a community representative is involved in each Yeruham is comprised of a diverse human mosaic, and part of the programme. hence public discourse and shared social action are an important platform for the development of local economy, The Operating Model: employment, infrastructure, the environment, intellectual property and the quality of life in the town. Thanks to the • Partnering with municipal authorities to promote social and successful combination of active entrepreneurs and a environmental issues and establish a link to the local vision supportive leadership, a change for the better is already • Establishing a local steering committee visible on the ground.

• Establishing a professional team led by the local municipality This model of activity was the • Mapping communities, needs, dreams and challenges first of its kind in the Negev • Selecting a main issue linked to the local vision; and served as inspiration for • Publishing a call for proposals additional municipal authorities in • Guiding and leading community initiatives the Negev, who have since joined • Building a professional human infrastructure the Thinking Doing programme.

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Among the successful projects developed as part of the between council and town leaders alongside the presentation Thinking Doing programme in Yeruham: of success stories of social entrepreneurs and residents who promote change for the benefit of the Negev communities.149 • Construction of a network of community gardens, community meeting places and community libraries. Key take-aways: • The Shade Trees project – adding and maintaining shade trees in public areas. Builds on the strong bond that usually exists between traditional industry and communities • “Improve the World” (Tikkun Olam) community woodworking where its plants are located and demonstrates the workshops – a local project that evolved into a regional project. company’s commitment to the community. • Subsidized community alternative healing clinic. A strong emphasis on capacity building – • Yeruham Mosaic – a project showcasing the legacy and through the joint initiative with local municipalities, heritage of Yeruham neighbourhoods. and empowerment of communities. • The Wagon project – a project promoting woodworking and design next to one’s home. Following the operation of the first “Wagon” in Yeruham, the project was expanded Challenge: with such ongoing programmes it is also to the Ramat Negev regional council, and later on also sometimes difficult to set targets for impact and to the towns of Mitzpe Ramon and Dimona. define the fine line between the municipality’s duties and the company’s involvement. The Thinking Doing programme has expanded and currently operates also in the Tamar and Ramat Negev regional councils, as well as in the cities of Be’er Sheva, IMPROVING EDUCATION Dimona and Mitzpe Ramon. The programme is carried Today's high school students are tomorrow's high-tech out under the administration of ICL in collaboration with professionals, scientists and researchers. Their ability municipal authorities and NGOs, with volunteering of ICL to excel in Math and Science will have a critical impact employees and financial support of the company.148 on Israel's economy and society in the coming decades. While the high-tech industry continues to bloom in Israel – The programme was the basis for an annual community gaining the country international recognition as the “Start- conference, allowing a glimpse of the creativity and Up Nation” as noted in the Preface – there was a sharp richness of Negev communities. The conference, which decline of 30% in the number of students who successfully manifests multi-sectorial partnership, began in Yeruham complete high level in 2018, as part of the long-term partnership with the Math (5 study units) town. The 2019 conference was held in the Ramat Negev from 2006 to 2012. This Regional Council. The conference is held in full cooperation decline had a number with the municipal authority and showcases the regional of reasons that if not activities of various Negev social entrepreneurs, not formally addressed necessarily belonging to the Thinking Doing network. could jeopardize the continuous growth of The conference provides an opportunity for an all-round the high tech industry view of social resilience in the region, and allows for dialogue in the country.

108 - Leaving No One Behind Intel Israel Intel Israel initiated the 5×2 initiative in 2012, partnering with to double the number of high school students who excel in several other businesses. In 2015, the Ministry of Education math and sciences, over the course of five years (2012-2017). adopted the programme as a national initiative. The goal was

Source: https://blogs.intel.com/csr/2017/03/the-exponential-power-of-collaboration/#gs.ywgwc1

5×2 Initiative in Israel The 5X2 Initiative - Joint Initiative of “Intel was one of the leaders in creating this initiative,” business, government and civil society said Bella Abrahams, Intel Israel Public Affairs Director. The 5X2 Initiative was launched in 2013 following a “Our engineers, together with engineers from 25 other significant drop in the number of high school graduates in companies, volunteered in high schools, speaking to mathematics, physics, chemistry, and technology, as well as students and parents, sharing their experiences and a growing shortage of teachers in these fields. At the same helping them understand the huge benefits of studying time there has been a consistent growth in the industries sciences and math for their own future. In addition, which demand excellence in these fields. These trends non-profit organizations partnered to provide backup have an immediate and long-term impact on increasing the tutoring and other essential services, while the Ministry of gaps in Israeli society, and on the future of the economy. Education contributed by policy changes where required, budget expansion, national awareness, and more.” “Our The 5X2 Initiative is designed to double the number of high lessons learned from the 5×2 and other initiatives include school graduates in the fields of Mathematics, Physics, the importance of connecting the corporation’s core Chemistry and Engineering at the level of 5 units in order business needs with society’s core needs, from the social to prepare them for the challenges and opportunities and/or government perspective,” added Abrahams, of the 21st century. The initiative operates according to emphasizing that: “This is done by addressing a national the Collective Impact Model. The non-profit organization social problem that intersects with a business concern.”150 Sheatufim acts as the backbone organization.

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(Sheatufim was established in 2006 by philanthropists A unique coalition of businesses, including over 40 leading including Israeli family foundations and social entrepreneurs High-Tech companies from Israel and abroad, has been from Israel, Europe and the United States. It rests on their formed in the framework of the initiative. These business shared vision of a pluralistic and proactive civil society that partners include Dell, eBay, HP, IBM, Microsoft, PayPal, fosters dialogue and connects non-profit organizations, Salesforce and Western Digital.152 government offices and philanthropists in Israel.151) The 5X2 Initiative works in strategic cooperation with the Sheatufim functions as the "conductor of the orchestra" Ministry of Education. Since 2014, the Ministry of Education and the "engine" that drives the initiative forward. As the has been spearheading the joint initiative with the “Backbone Organization,” Sheatufim is responsible, among National Programme for the Advancement of Excellence in other things, for formulating an agreed, joint platform that Mathematics and Science. includes defining the common vision, the mission, the goals and the modes of action. The organization supports The 5X2 steering committee includes 18 representatives of the 5x2 Initiative’s steering committee at all stages of the organizations and leads the policy-making and the strategy process, including funding, promoting supportive public formulation of the initiative.153 policy and coordinating all the partners. Already in its seventh year, the 5x2’s mission is to promote excellence in scientific and technological education as an engine for the development 5×2 initiative has been deemed of a general culture of excellence in education. “We are a success, returning the level committed to achieving this while simultaneously, reducing gaps and providing equal opportunities for all students, male of STEM (science, technology, and female, and from all the many facets of Israeli society”. engineering and mathematics) studies nationally to the previous peak level of 2006.154

Key take-aways:

Good evidence of a win-win outcome where tech companies and the education system share a common interest in boosting STEM studies.

The Partner Network currently consists of about 100 representatives of organizations. Other prominent players Challenge: Collective action is successful when the include the Defence Ministry, the IDF and local government, chosen topic is one that signifies wide agreement as well as academic institutions, schools, science on a challenge, as well as a clearly defined mechanism for museums, educational organizations and philanthropic all parties to contribute. foundations.

110 - Leaving No One Behind MOBILISING MANAGEMENT EXPERTISE Education) is an innovative initiative providing a professional AND INTEREST TO TURN ROUND FAILING management platform enabling public schools in Israel's SCHOOLS urban and geographic periphery to transform into inspiring Businesses can support NGOs and community causes in institutions for the school's community (students, teachers, numerous ways – often referred to as the 7Ps: parents, local community) in terms of its educational and social achievements and accomplishments. • Profits (cash contributions)

• Product (including services) The initiative was established in 2011 by and Karen Tal, who was then the principal of the Bialik-Rogozin • Premises (hosting NGOs, giving them surplus buildings eg School in Tel Aviv for six years. The school, which was at final period at the end of a long-lease) risk of closure, was awarded the National Education Prize • Promotion (using cause-related marketing to publicise a in 2011. During her term as principal, the comprehensive cause or social campaign) model was developed and applied successfully. Several such success stories in various schools led to the • Partnership (mobilising / joining other business and Civil development of a holistic model which places the school Society) as a major anchor in the students' everyday life and in the • Power (lending the credibility of the firm, showing due community. It operates in all types of schools – grammar diligence has been done on an NGO partner etc, making and high schools, religious and secular, Jewish and Arab. introductions to others, lobbying on behalf of the NGO/ cause with municipalities, central government etc) The initiative supports the schools participating in the programme by assisting them with human capital and • And, perhaps, most importantly, People (employee financing, sharing knowledge and assisting in the creation volunteering, sharing professional expertise, management of a community of volunteers and partnerships as part of skills etc). Amanda Bowman from the corporate the community development. The schools in return are volunteering NGO Emerging World, emphasises that committed to continuous improvement in order to achieve “expectations from employees are changing. For example, a transformation in the school, harnessing community millennials overwhelmingly state that they want to make development and sharing the accumulated knowledge. a difference to issues that they care about and research shows that they prefer to volunteer with their colleagues. The initiative guides school principals and administrators to They’re also looking for new and different ways of dealing develop a perception of leaders and social entrepreneurs with the stresses of balancing work and life – and working to create a comprehensive response to students' volunteering is seen as part of that. Equally, employees educational, emotional and social needs. want to bring their whole selves to their workplace each day and not to leave their values at the front door.”155 It started in five schools: appointing a chair and board members to help the school manager; and bringing in volunteers from local businesses to help the school. This Tovanot B'Hinuch quickly extended to 35 schools in and around Tel Aviv. Yair Seroussi, a former Treasury official and ex-chairman According to Seroussi, one school in a deprived area of of Bank Hapoalim, described to us one powerful example Bat Yam that is part of the initiative, improved its National of harnessing People Power. This has involved mobilising Examination scores from 25% of the national average to business and now other leaders too, to help improve the 85% over seven years. The only change in the school’s management of schools in very difficult socio-economic circumstances was the addition of a board of business areas: Tovanot B'Hinuch. people to support the school manager (who was the same person over the period). Seroussi himself now chairs this Tovanot B'Hinuch (literally translated as Insights in initiative.

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Employment of people with 156 disabilities through Call Yachol Goals and operational principles of the initiative from each school and their conceptualization, and teaching In addition to employing people with Goals: colleagues by creating a learning community of the Asperger's syndrome, participating schools – the school principals and management • Designing the school as a major teams of the action committees and the volunteer corps. stronghold in the students' All of the parties are in constant communication facilitating lives and in the surrounding development of a broad view of the educational model. • A proactive approach and action inspired by passion for community, providing a suitable, creativity total response to scholastic, Israel’s Ministry of Education has identified 500 schools social and emotional needs. across Israel facing challenges, and in which the pupils are • Creating partnerships for change – educational and at risk of being in an on-going cycle of deprivation and social social – which makes it possible for: the school principal and economic exclusion. Significantly, Israel’s Ministry of and staff to generate a dramatic turnaround in the school; Finance recently issued a Request for Proposals to extend the students to change their launching pad for life; civil the pilot scheme to bring in business people to schools and society – companies, non-profit associations, individual to formalise these Education-Business Partnerships. volunteers – to give and to influence.

• Strengthening Israel's public education system, Key take-aways: introducing public discourse supporting educators and the respect of which they are worthy. Strong evidence of the potential for a careful matchmaking between business leaders and Operational principles: school principals to empower both sides. • Encouraging perception of the school principal as an educational leader and social entrepreneur, motivated by a worldview of breadth and depth, driven by a vision and Challenge: When scaling up in cooperation with capable of achieving optimal results. the Ministry of Education, as described above, • Establishing action committees and volunteer corps, with the need to keep the "personal touch" that the initiative is people from the industrial world, the economic sector, based on. academia, the military and the social arenas which give the principal the tailwind for making the vision for the school come true. HELPING YOUTH AT RISK • Forming a cohesive package from the knowledge Bank Leumi - Aharai 157 management methods and best-practice tools for About Bank Leumi: management and integrating them into the school. As introduced in chapter 5 and again in chapter 6, Bank Leumi is Israel's oldest bank, founded in 1902. With over • Generating partnerships between state authorities 200 branches spread across the country, Leumi is deeply and social entities to push the school forward and pool embedded in Israeli society. Unsurprisingly, therefore, resources in an optimal manner. Leumi’s community policy aims at building inclusion and • A learning organization – disentangling major insights strengthening Israeli society. The main emphasis is on

112 - Leaving No One Behind helping young people and enhancing their capabilities The larger organizational goals of Aharai are: through education; improving their academic achievements • Educating youth for active citizenship and social via personal training; instilling values in them; encouraging involvement. them to pursue higher education and increasing the number of IDF recruits through a meaningful community • Raising awareness of democracy and fostering tolerance. service experience. The focus on these activities stem from • Navigating youth at-risk to the path of success. the belief that they constitute an “entry ticket” into Israeli society.”158 • Training young leaders, particularly from deprived populations. Leumi encourages its employees to take an active part in volunteer activities and to be involved in community life, Aharai conducted an impact evaluation survey amongst 2,000 again with an emphasis on youth. Employees are involved in of its graduates and active participants. This found that: several forms, including: taking an active part in community • 70% expect that their level of education and economic activities and events together with young Israelis, hosting status will be higher/surpass that of their parents. them in bank branches for tours, giving them lectures on wise financial management, conducting organizational • The percentage of students in higher education among workshops, and more.159 Leumi's partnership with the NGO graduates of the programme is double the percentage Aharai is one of the flagships of its community work. of students in the general public in Israel: 66% aged 26- 30 from Aharai graduates vs. 35% in the general public About Aharai: (according to the Central Bureau of Statistics). Aharai means 'Follow Me' in Hebrew. It was established • 60% of graduates are employed in the public sector vs. over 20 years ago and has been a strategic partner of 35% in the general public (according to the Bank of Israel). Bank Leumi for the past 15 years. Aharai is a social and educational NGO engaged in developing young leadership, Following participation in Aharai programmes: as well as encouraging social involvement among youth and young adults. Through educational programmes which • 93% of survey responders declare that they have connect the participants to milestones of Israeli society, the someone to consult with in major life choices. organization instils in its school-aged members a feeling of • 73% declare that they know people who will help them success while encouraging them to integrate as contributing secure better jobs. citizens in Israeli society. The majority of Aharai participants come from Israel's social • 82% declare that the programme contributed to their and geographical periphery (but not all. The idea is to create personal and social development. a mix of Israeli youth from various backgrounds). • 72% declare that the programme contributed to their Aharai operates about 400 groups in 150 communities capacity building and gave them better skills to succeed in throughout Israel, focused primarily on leadership and the military service and life in general. preparation for a meaningful service in the IDF (Israel Defense Forces). About 9,000 teenagers from all sectors Through focusing on the military service, Aharai aspires participate in these groups each year. Thus far, Aharai has to help youth at risk get on the right path to fit in and be over 50,000 graduates. a part of society – something which in many cases they did not achieve in the formal education system. As argued Aharai's activities include, among others: hiking courses, in Chapter 3 above, the underlying perception is that the learning centres for the Israeli matriculation exams, Israeli army (IDF) serves as a melting pot of Israeli society empowerment for youth of Ethiopian origin, military and poses a unique opportunity for youth from deprived preparation courses, community service and an alumni backgrounds to better integrate into society. association.

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As discussed in chapter 3, the Israeli army does not merely group is similarly successful: 83% of graduates from an serve as Israel's Defence Force but also plays a key role in Ethiopian background indicated a high level of personal Israeli society. Military service is perceived as the ultimate development and capacity building. contribution to society in Israel. In addition, the military service is mandatory, meaning that almost all parts of society Cooperation between Bank Leumi and Aharai: are obliged to take part. This poses a very unique situation Leumi is the main supporter of Aharai's activities, having in which teens from all socio-economic segments of society donated over 66 million NIS over the 15 years of strategic meet, live together and serve side by side. Such connections partnership (about $20 million). More than 550 Leumi and relationships would be far less likely to occur if not for employees volunteered in Aharai projects in 2018. The the shared experience of serving in the Israeli army. volunteer work included: • Mentoring – professionals from Leumi advise the NGO’s The military service per se is not the goal of the Aharai managers and help them in their field of expertise (HR, programme, but rather a means of giving youth at risk a Finance, Strategy, Marketing, Training, etc.) second chance through informal education. The young people are recruited to Aharai programmes both through • Use of the Bank's assets and premises for ongoing schools and from the streets, as many of them are teens activities of the organization. who dropped out of school. • Participating in Aharai's activities and special annual events, such as the concluding journey of the programme Many participants emphasize at Mount Herzl in Jerusalem, with thousands of Aharai that being in Aharai was the first members taking part. time they were ever encouraged Bank Leumi also gives Aharai graduates an opportunity to to succeed and were work at the bank, and if they last an entire year they are appreciated for their skills and awarded a bonus of 10,000 NIS (about $2,850) for sticking with the job and not dropping out. If the bank finds them to capabilities. Many discover that be fit for employment, they will be hired as bank employees. they are capable of much more Potential future extension of Aharai than they had believed possible.160 Interestingly, Cecile Blilious, co-founder and Managing Partner of Impact First Investments (see Chapter 7 above Aharai programmes have been very successful so far: page 94) argues that Israel now needs a second Aharai – or • 80% of graduates are active in their communities and at least a new division of the existing organisation – to help promote issues that are close to their heart. the target youth at risk to prepare not just for the general units of the IDF, but for the elite IDF cyber units, because it • 80% feel that they have fulfilled their potential in terms of is from these units that young people graduate into well-paid education. jobs with good career prospects in Israel's burgeoning high • 87% feel that they have fulfilled their potential in terms of tech sector – and that without some such proactive initiative, their professional career and their current occupation. there will continue to be social and economic exclusion.

Aharai now makes an extra effort to recruit youth of Is there an opportunity for (say) the HR Forum of High tech Ethiopian background. The impact with this population Industries Association, Tmura, technology Venture Capitalists

114 - Leaving No One Behind etc to create and pilot a dedicated programme within disabilities. They have a whole spectrum of needs. Many Aharai to help Youth at Risk with the requisite potential to of us want to make an impact where we feel we are most qualify for the elite technology units of IDF such as Unit capable and to do something close to home.” 8200, rather than having to try and retrofit remedial training and networking opportunities post-IDF service? As a result, a few employees, coming from different teams in SAP Israel, got together, both during and after work, in a very Key take-aways: ad hoc way and had some modest impacts. As a result, at the next hackathon, there was a dedicated channel for employees The long-term partnership between Leumi and interested in projects to help the community. The intention was Aharai is a good example of diligent and ongoing to encourage employees to work on community projects. This investment that is required in order to make a channel in the hackathon was very successful. 61 employees lasting social impact. signed up for this channel in the hackathon, one of the most signed for. Generally, each channel involved 30-40 employees. The effort that the programme makes to evaluate its impact is important and shows clear This led the Human Resources department to propose to evidence of success. the management that they develop a model for supporting community projects which would be sustainable over time. The goal was to empower employees without provoking so Challenge: Using the lever of the military service many different projects that could result in a management has a clear evidence of success, offering backlash because employees were getting too distracted additional programmes post military service might prove as from their daily work. substantial as well. As Hagag noted, “we needed a model that will be a lasting one, that we have the bandwidth to support. On the one SAP Israel hand, we did not want people feeling that they are doing Investment in promoting technological accessibility and something they shouldn’t be doing in their working time, but greater social inclusion of people with disabilities161 nor did we want management push-back! There is always a delicate balance between volunteering and getting good SAP Israel has used a well-established methodology of feedback from managers, until managers feel it is all getting the hack-a-thon, adapted it for social good and codified a to be too much and you need to get back to 'real life'!” process for employees to champion social innovations. Given the number of different teams and units working out It began with a regular hackathon. This is a methodology that of SAP in Israel and the potential for some managers to be is used quite often in SAP and in the high-tech sector in Israel supportive and some to be unsupportive, it was recognized generally. In this particular hackathon, SAP management that the company had to create very clear guidelines realized that employees wanted more community related and a robust model, so that it is not at the discretion of projects to work on. During this hackathon a few examples each manager. The company applied standard project came out, and when talking to employees, they said: “we are management principles to this community activity. doing a lot in the community but we can do so much more in our areas of specialism, which takes our advantages as a Essentially SAP Israel encourages employees to become programming company and applies them.” social intrapreneurs and as a number of companies internationally have found, in trying to build a supportive Yael Sagi Hagag, Vice-President, HR takes up the story: eco-system, it is sensible to set some parameters in terms “we started thinking about Issie Shapiro, which is a special of priorities for intrapreneurial activity. In this instance, house here in Raanana162, for kids with really severe SAP decided that the focus in the coming years would be

Leaving No One Behind - 115 PART TWO Chapter 8 | BUSINESS AND SOCIETY accessibility, and specifically technology to enable greater where there was no clear need from the field, or there accessibility for disadvantaged groups. was no project lead from the NGO, it didn’t work. We will not approve any project until we know we have leads on As Hagag explains: “We didn’t want to propose something both sides: us and the customers, meaning the NGO or the totally new, because there were already a few teams partner we are partnering with.” working on things in the area of accessibility and we wanted to make it the right fit, not bring something from the top, but SAP employees now have several successful projects having the voice of the people, so this was first.” completed, including an accessible keyboard, which helps people with different disabilities and an accessible calculator Having decided on the focus, the company also decided that which can be used by people with different needs, whether there would be a maximum of five teams at any given time. it’s cognitive difficulties, eyesight issues, etc. Another project This was based on a judgement about how much community- produced an app that helps people learn sign language in related activity the company could realistically support. Each Hebrew. team would have around 6-10 employees involved. As the programme matures, SAP is now looking into having Each project has a project leader that also reports back to NDAs (Non-Disclosure Agreements) and legal agreements management from time to time, about progress, challenges with partners which will enable SAP to use the innovations and what investment is needed, just like any other also in commercial applications. commercial project. It was agreed that projects can meet twice a month for a full day each time, so it is a meaningful Key take-aways: investment of SAP resources: somewhere between 720 and 1200 employee days per year. This example shows how companies can adapt their core methodologies and processes for The project teams only meet on Sundays, in order to community activities. minimize disruption to commercial work (Standard work week in Israel is Sunday till Thursday). Sunday was chosen Many employees are looking for more purpose as it is usually a quieter day, especially for employees who and meaning in their lives and a chance to work work with global teams in Germany, the US, and more. Line on a substantive and practical community project managers know that project members will be absent on a is very attractive, especially where it involves Sunday once every other week. using employees’ skills and experience; and also provides opportunities to acquire new skills. Community projects normally involve an NGO partner, and Companies wishing to encourage intrapreneurial SAP require that the NGO nominate a project leader from activity, but are concerned about potential its side as well, same as in any commercial project which anarchy from “letting a hundred flowers bloom” requires a customer who can specify their needs, in order can set some parameters to direct the employees’ for SAP to come up with relevant solutions. energies and enthusiasm

As Hagag explains: “in order to know what solution is needed we need to know the challenges and the Challenge: how, beyond employee motivation and customers.Like every other SAP product, we want to better morale and positive reputation in the community, understand the customer, and we learned that in the past, can companies like SAP also find commercial benefits from such activities. 116 - Leaving No One Behind FAST-GROWING TECH START-UPS those donations to worthy non-profit causes in Israel, with GETTING INVOLVED a focus on education/youth-related organizations. As we have already emphasized, Israel is now widely Upon a successful exit, the donor company will be known internationally, as “Start-Up Nation” with a dynamic encouraged to select a grant recipient or recipients from high-tech sector. The technology Start-Up “eco-system” is Tmura’s list of recommended projects. also starting to become more proactive in contributing to Inclusive Growth. Alternatively, if the donor company prefers, it may also direct the proceeds to a project of its choice. To be Tmura consistent with Tmura’s objectives and in order to ensure Unsurprisingly, given the close and symbiotic relationships that the funds are directed to recognized and worthy between Silicon Valley in the US and the so-called “Silicon organizations, if the donor company choose this route, Wadi” in Israel, Israel has replicated the Silicon Valley model the recipient must still meet Tmura’s basic criteria for of encouraging successful high tech start-ups to share the support163. 620 companies have donated options to Tmura fruits of their success, by vesting some of their shares in so far which has generated over $17,500,000 for education the community, when they initiate their IPO (Initial Public and other youth-related initiatives. Offering). The main mechanism for doing this is Tmura – The Israeli Public Service Venture Fund. Tmura is a non- profit organization established in 2002 by the Israeli venture CONCLUSION capital and high-tech communities. Tmura aims to support There is a strong emphasis on applying corporate and charitable activities in Israel, by sharing a portion of the individual expertise and management skills to partnerships wealth created by the country’s technology sector with with NGOs, municipalities and social causes. In recent education- and youth-related initiatives. years, a number of collaboration platforms and umbrella organisations have emerged, through which even SMEs can contribute their expertise and people power.

Companies can be more systematic and strategic by applying some form of the A.C.T.I.O.N. model for community involvement, described in Chapter 4. Businesses can also adopt a “Waste is wealth” mindset to the community by, for example, donating surplus office furniture and other redundant equipment to local NGOs; and by giving surplus food from workplace canteens, restaurants and special events to groups such as Leket Israel foodbank (www. Leket.org) so as to help tackle immediate problems of poverty. More fundamentally, however, businesses need to consider how their community involvement can be strategic and support its action in the workplace, supply- chain and marketplace to achieve Inclusive Growth. More broadly, businesses need to be good corporate citizens: paying their fair share of taxes and educating institutional investors about why supporting Inclusive Growth makes Tmura receives donations of equity stock and stock options good business sense. from private (and, to a lesser extent, public) companies. Once a company’s shares are liquid, Tmura exercises the Meantime, any business in Israel can consider this practical options and sells the shares, and allocates the proceeds of checklist for Community activities.

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PILLAR FOUNDATION DEVELOPMENT CHAMPION

Audit existing community Identify and establish external Identify and establish programmes involvement and how far this NGO partners for company-led that are linked to the company’s already enhances Inclusive projects core impact on inclusive growth Growth

Set targets and measure percentage of community involvement programmes impacting inclusive growth COMMUNITY Invite employees and other Establish a process to evaluate Train staff likely to be involved in stakeholders to identify fresh employee ideas for community partnerships with NGOs, public ways that company could involvement to encourage more sector and other businesses, in promote Inclusive Growth Inclusive Growth Partnership Skills

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CHAPTER 9 | HOW CAN MORE BUSINESSES CONTRIBUTE TO INCLUSIVE GROWTH IN ISRAEL AND INTERNATIONALLY

We hope that “Leaving No One Behind” will inspire their neighbourhood and through trade associations and many more businesses in Israel – both large and small other business representative organisations of which they – to contribute to Inclusive Growth; and will encourage are members. This also calls for engagement between businesses already engaged to extend their activities. companies and their investors on how more Inclusive Growth will make their business more sustainable and better Businesses that want to begin their efforts to encourage able to generate decent returns into the indefinite future. Inclusive Growth in Israel can take the Foundation Stage actions in one or more pillars. Businesses already involved We suggest that businesses might employ some version of can accelerate to the Development Stage. We encourage the A.C.T.I.O.N framework described in Chapter 4. Amongst businesses to graduate over time to a Champion Stage. other things, this might involve N - nurturing: building the (see Table below) capacity of intermediary NGOs like Co-Impact, Aharai, Al Fanar, Israeli Forum for Diversity, KamaTech, Paamonim, This should not just be delegated to the Corporate Tsofen and WeSource so they can work with many more Responsibility or External Affairs function. Rather, reviewing businesses. This could be particularly important because current performance and opportunities for improvement and innovation in implementing the different items on this the Israeli way tends to eschew Checklist, should be a cross-company exercise involving Human Resources, Purchasing, Marketing & Sales, Production, top-down grand plans, in favour of R&D, New Business Development and Finance too. more organic understanding of a “direction of travel,” with individual As well as developing their own activities, businesses can be advocates for this Inclusive Growth Agenda with companies, then coming up with their suppliers, other businesses in their sector or in their own ways to get there.

PILLAR FOUNDATION DEVELOPMENT CHAMPION

Establish base-line: composition Extend number of target groups Establish new stretch targets of workforce: entry-level, junior/ currently under-represented in on percentages of under- middle/senior management in workplace that business is trying represented groups in workforce terms of gender, People with to recruit at both entry-level and Disabilities, ethnicity, etc management levels

Set target precentages for total Revise and increase target workforce & for management numbers for employing Ultra- in terms of gender, people with Orthodox Jews, Arab Israelis and

WORKPLACE disabilities, etc. people with disabilities

120 - Leaving No One Behind PILLAR FOUNDATION DEVELOPMENT CHAMPION

Identify & implement necessary Monitor retention and workplace workplace modifications in advancement rates for target order to accommodate under- groups. represented minority groups such as Ultra-Orthodox women, Appoint workplace champions Arab Israelis for employing Ultra-Orthodox, Arab Israelis, people with disabilities, and working carers

Train first line-managers in Establish employee peer group WORKPLACE managing cross-cultures and networks for People with people with disabilities Disabilities, Ultra-Orthodox, Arab Israelis

Work with partners - to identify Join external learning networks Share company experience in & provide pre-recruitment to share emerging good practice external talks and interviews by training to target under- and learning company chair/CEO/SMT (Senior represented groups Management Team)

Identify and provide support for Pay enhanced Minimum Wage Develop a compressive plan to employees living below poverty- advance personal and economic line well-being, focused on low income employees

Building a career path for entry Build a compressive programme level employees for reskilling and career path for entry and mid-level employees

Set targets from internal recruitment for higher skilled jobs for entry level employees

Train and provide tools for Train content experts on pension Advise on pension planning to all pension planning planning within the organization employees

Fund retirement planning courses Continued entitlement of retired Offer courses and training to employees to the organization’s develop skills and capabilities of well-being benefits retired employees

Leaving No One Behind - 121 Chapter 9 | HOW CAN MORE BUSINESSES CONTRIBUTE TO PART THREE INCLUSIVE GROWTH IN ISRAEL AND INTERNATIONALLY

PILLAR FOUNDATION DEVELOPMENT CHAMPION

Establish baseline of working Consult with working carers on Offer paid Carers’ leave carers in the organization development of programme for practical support for working carers

Monitor & regularly report on progress WORKPLACE

PILLAR FOUNDATION DEVELOPMENT CHAMPION

Review payment terms and Build on-line Supplier Interchange Break up larger tenders into commit to paying all suppliers where suppliers can also share smaller tenders so that SMEs can on-time good practice to raise standards realistically bid for them and support Inclusive Growth procurement

Verify that manpower/service Recommend Maala Basic Index Incentivise suppliers to join the contractors comply with labour to SME suppliers Maala Basic Index

SUPPLIERS laws

Ensure procurement policy Check procurement processes Set aside percentage of all also include reference to the inherently address social and contracts by value for suppliers advancement of social and environment issues from minority groups such as environmental issues Ultra-Orthodox, Arab Israelis, people with disabilities. Set targets for suppliers with social and environmental edge.

Periodically survey suppliers’ Run regular supplier Run comprehensive supplier views of working with the conferences to share good capacity building programmes company practice and build capacity

122 - Leaving No One Behind PILLAR FOUNDATION DEVELOPMENT CHAMPION

Identify vulnerable customers Review product/service Add increasing inclusion as a core and ways to reduce their portfolio and identify any which “stage-gate” criteria for company’s vulnerability inadvertently increase social & innovation process and business economic exclusion and look to development modify or remove from portfolio

Encourage employees to become “social intrapreneurs” who champion creation of products and services which enhance Inclusive Growth

Link executive compensation to inclusive growth criteria relevant

GOODS & SERVICES for the company

PILLAR FOUNDATION DEVELOPMENT CHAMPION

Audit existing community Identify and establish external Identify and establish programmes involvement and how far this NGO partners for company-led that are linked to the company’s already enhances Inclusive projects core impact on inclusive growth Growth

Set targets and measure percentage community involvement programmes impacting inclusive growth COMMUNITY Invite employees and other Establish a process to evaluate Train staff likely to be involved in stakeholders to identify fresh employee ideas for community partnerships with NGOs, public ways that company could involvement to encourage more sector and other businesses, in promote Inclusive Growth Inclusive Growth Partnership Skills

The overall message should be that there are now There are obviously also opportunities to consolidate numerous examples of businesses in Israel successfully and extend this expertise. For example, to work with contributing to more Inclusive Growth; and also that there the Diversity Forum, the HR Forum of the High Tech are intermediaries with relevant expertise and networks Industries Association, Co-Impact, Caregivers Israel and to help businesses progress in each of the four pillars of other interested partners to find the practical how-to business action for Inclusive Growth. guidance for Israeli employers to (a) employ and (b) be

Leaving No One Behind - 123 Chapter 9 | HOW CAN MORE BUSINESSES CONTRIBUTE TO PART THREE INCLUSIVE GROWTH IN ISRAEL AND INTERNATIONALLY able to promote Arab Israelis, Ultra-Orthodox, people with Corporate Responsibility Coalitions disabilities, older workers, and working carers – and to The Maala CSR Index and Basic Index for SMEs is identify common themes. something that other national coalitions could implement with their local Stock Exchange or a media partner. LESSONS FOR BUSINESSES Similarly, coalitions can work with their member companies INTERNATIONALLY to help them to challenge their suppliers to raise their What are the relevant lessons for readers of Leaving No ethical and sustainability standards and, thereby, become One Behind beyond Israel? For readers in: more resilient and inclusive.

• Business Think-Tanks working on social exclusion and Inclusive • Corporate Responsibility Coalitions Growth Whilst models of pre-recruitment, customised training, • Think-Tanks working on social exclusion and Inclusive of capacity-building suppliers, of innovation to support Growth vulnerable customers and of local economic regeneration have been developed in many other parts of the world Businesses too, the specific combination of examples from Israel, Businesses in many other parts of the world are also offer some interesting, additional approaches, as in how suffering from a lack of trust. businesses can support Inclusive Growth. Many of the specific actions in the table above are relevant for businesses in other countries, particularly to reach out to communities under-represented in the labour force in their countries.

124 - Leaving No One Behind Leaving No One Behind - 125 PART THREE GOING TO SCALE

CHAPTER 10 | CONCLUSION

Whereas Start-Up Nation described an emerged We want to hear from the CEOs and managements of phenomenon, we believe that in Leaving No One Behind, Israel’s largest companies, from CSR officers, from those we are describing an emerging phenomenon. Our hope is running the Israeli operations or R&D Centres of global that by doing so, by drawing attention to it, and by “joining up businesses; from start-up entrepreneurs and social the dots,” we will speed up and intensify the activity already entrepreneurs; young people, older citizens; from trade under way – and also stimulate additional actors to join in. unionists; officials and people working in government and in municipalities; from staff, board members, volunteers, Leaving No One Behind is not donors of charities and voluntary organisations; from intended to be the last words venture capitalists and impact investors; from social commentators and academics; and from regular visitors on this crucial topic. Rather it is to Israel. designed as a Call For Action and On each point on the innovation impact spectrum an invitation to collaborate further, below, where are there further examples of business and to bring in additional partners. contributing to inclusive growth in Israel?

INNOVATION IMPACT SPECTRUM

NEW IDEAS EMERGENT/ EARLY POSITIVE RECOGNISED/VERIFIED INTERESTING PRACTICE IMPACT GOOD PRACTICE

One of our international reviewers challenged us to identify basis for such a discussion and a catalyst to engage as what would success for Inclusive Growth in Israel look like? many stakeholders as possible. With the heavy caveat that Inclusive Growth is an on-going task rather than an end destination, this question is indeed Some of these aspirations will predominantly depend on an excellent start point for a wide stakeholders' discussion the interventions and policies of government, municipalities on what to aspire to. In that, we hope that this book is a and Civil Society organisations. Some will principally involve

126 - Leaving No One Behind employers – and employees themselves – taking action. last word to its lead author: Dan Senor. He spoke to a In many cases, these aspirations will require effective major conference in Israel just a few months ago164. He collaboration between business, public sector and Civil Society. concluded his TED-style talk with a powerful peroration which clearly linked Israel’s continuing global success as “Leaving No One Behind,” has deliberately concentrated on the Start-Up Nation and a global innovation and high-tech the role that some businesses in Israel are already playing, hub, with the pragmatic and the moral case for being more in the hope and the expectation, that its publication will proactive in promoting Inclusive Growth. encourage many more businesses in Israel to get involved. Senor concluded his talk: In “Start-Up Nation,” Dan Senor and Saul Singer describe Israel as a “beta-country,” addressing seemingly insurmountable challenges: “The opportunities for Israel in the world are enormous. Now Israel is “Israel is one of the world’s foremost ideas factories and indispensable to the new geography provides clues for the meta-ideas of the future.” where innovation is dispersed across It is our conviction that those “meta-ideas of the future” include businesses taking more proactive and strategic the world. What is striking, is how many approaches to achieving Inclusive Growth, as part of a new nations want to partner with Israel. Social Contract between business and society. That is the opportunity. The challenge

For twenty years, Maala has been at the forefront of debates is, Israel is running out of people. There about responsible business in Israel. It has deftly scanned are only so many Israelis currently the international horizon and introduced relevant experience plugged in to the Israeli labour and expertise to the Israeli business community. At the same force who can currently do these time, it has encouraged members which are the Israeli part of global businesses, to draw in the good practice of the (innovation/high tech) jobs. So how global companies. It has worked with Israeli-headquartered do we keep the promise? How do we companies to tease out and articulate their philosophies keep marvelling at what Israel is doing and practice. Maala has also been well-placed to encourage and cajole more and better Corporate Responsibility in Israel. here and around the world? It has been willing to synthesise local and global, and to keep on advancing the agenda. There can be no doubt as to the We have to further develop talent urgency both in Israel and globally of tackling inequalities and inside Israel. Develop the pipeline achieving more Inclusive Growth. “Leaving No One Behind” signposts a route to more Inclusive Growth. Many more of human capital. This serves two businesses both in Israel and internationally are called now purposes: (a) it maintains Israel’s to join this journey. connectivity to the world; and (b) it

With this book, Maala also wishes to put down a marker fulfils our obligations here to help those and make a statement of intent about becoming a hub demographics of Israeli society that for emerging ideas and good practice in business and have not yet experienced the promise inclusive growth. of this amazing innovation economy.” Perhaps it is fitting in the tenth anniversary year of the original publication of “Start-Up Nation,” to give the

Leaving No One Behind - 127 POST SCRIPT

HOW MAALA WILL TAKE FORWARD THIS PROJECT TO ENGAGE MORE BUSINESSES IN ISRAEL AND INTERNATIONALLY ON THE INCLUSIVE GROWTH AGENDA? Tami Leffler | Momo Mahadav | Elisha Silberklang

We recognise that optimising efforts for Inclusive Growth The book will serve as a stepping stone for further will require action from Governments, local governments, work that is innovative in inclusion with Maala member Civil Society, trade unions, academia and think-tanks, as companies and partner organizations. well as from businesses. Internationally, Maala wishes to share the experience As a Corporate Responsibility coalition, however, Maala of Israeli businesses in contributing to Inclusive Growth, commits particularly to efforts to engage more businesses with international audiences in business, Civil Society, – both in Israel and internationally. international institutions, media and academia.

Within Israel, we intend to promote awareness of “Leaving Maala will seek to share the main findings of this publication No One Behind” and its contents and engage with for international audiences via conferences, media interviews, stakeholders about the priorities identified for action. webinars, round-tables and more. Maala is also ready to host Building on the 2017 and 2018 annual Maala conferences field-trips for interested groups of international business which both focused on Business & Inclusive Growth, the leaders, wishing to learn from the experiences of businesses 2019 conference will make this publication a centre-piece in Israel. The content of Leaving No One Behind and (Tel Aviv: December 4-5). associated, background resources and research materials is readily available to other players in the field: Corporate Furthermore, we invite all member companies to help to Responsibility Coalitions, think-tanks, research centres and expand the checklist of practical ways that businesses in others. The Maala CSR index – and the Basic CSR Index for Israel can contribute more systemically to Inclusive Growth SME suppliers – could also serve as a tool for national based (chapter 9). responsible business networks working on inclusive growth.

In 2020, additional questions about Inclusive Growth in the We strongly believe that the work is not only about facing annual Maala ESG Index on the Tel Aviv Stock Exchange, the risks of ignoring social and economic exclusion, but also will come into force. The data will collate additional about realizing the opportunities from proactively promoting examples of how leading Israeli businesses are contributing Inclusive Growth. This is evident as the world grapples with to Inclusive Growth as demonstrated by their Index the achievement of the Sustainable Development Goals. submissions. More broadly, this invites a ‘deep dive’ on the Maala and its members and partners are ready and able to data about Business & Inclusive Growth, which might be be part of this effort, both in Israel and internationally. derived from the longitudinal data available in a mix of: TA- Maala Annual Index since 2005, the SME Index since 2016, Our work on Leaving No One Behind also showed us the annual GlobeScan-Maala Radar since 2014 and other that some aspects of social exclusion are more widely relevant sources. The objective will be to examine the recognised than others; and that some forms of business relative effectiveness of business contributions to Inclusive contribution to inclusive growth are already being more Growth, and to explore hitherto unidentified but valuable widely practised than others. This analysis marks the areas connections between different pockets of business activity. where future work is needed.

128 - Leaving No One Behind ACKNOWLEDGEMENTS

Apart from the main authors, we would like to Yael Dromi | Head of Stakeholders Division | Bank Hapoalim thank the other members of the Maala team, Anat Gabriel | CEO | Unilever Israel who helped conceptualize and structure the book, and also provided important insights on Noam Gedalyahu | Head of CSR | Aroma Espresso Bar several case-studies: Adi Gingis | CSR manager | SAP Israel Yair Cohen | Director, Membership & Maala ESG Rating and Indices Osnat Golan | Vice-President: Communication & Anat Moseinco | Director, Membership & Sustainability | Strauss Group Sustainability Orit Halamish | Director of Organizational Development | Omer Chen who helped with data from the Strauss Group Maala Basic Index, and Shani Tal who helped with data from the Israeli Diversity Award. Boaz Israeli | CEO | Praxis Guy Itshak | eCommerce & Digital | Unilever Israel We would like to thank everyone who generously gave their time to be interviewed for this publication and Azriel Kaminsky | Head of CSR | Bank Leumi subsequently often responded to follow-up queries: Rinat Kratz | HR & Recruitment | Osem-Nestle Bella Abrahams | Director of Corporate Affairs & Public Yahaloma Kries | Head of Personal Welfare department | Affairs | Intel Israel and EMEA CBC (Coca Cola Israel) Micky Adiv | CEO | G1 and Chairperson, Maala Liat Lavee | Communication External Affairs & Sustainable Amalia Adler-Waxman | VP, Global Social Impact | Teva Business Development Manager | Unilever Israel Pharmaceuticals Rachel Ledany | CEO | Caregivers Israel Dr. Talia Aharoni | founder CEO | Maala Uria Lin | Director | Hackaveret (The Hive) - Israel’s Social Joseph Akerman | Director | OECD Department & Head Innovation Hub of the Responsible Business Conduct (RBC) Unit, Israeli Hadar Manor | CSR Manager | Bank Leumi Ministry of Economy Itai Nixon | Director, Economic Department | Israeli Ministry Sharon Alaluf | Head of CSR | Bank Hapoalim of Strategic Affairs and Public Diplomacy Elah Alkalay | VP Business Development | IBI Investment Shiri Peremen-Yaron | Recruitment Manager | Osem-Nestle House Dan Propper | Chairman of the Board of Directors | Osem- Kiram Baloum | CEO | Jasmine Organization (co-founded Nestle We Source) Daniela Prusky-Sion | then Director of Global Internal Cecile Blilious | Managing Partner | Impact First Investments Communications and Sustainability | Strauss Group Revital Bitan, Head of CSR, Intel Israel; Henn Rivner | Executive Assistant to the CEO and Corporate Shraga Brosh | President of the Manufacturers Association Responsibility Manager | Osem-Nestle of Israel Ronit Ronen-Karpol | EVP HR | Western Digital Israel & EMEA

Leaving No One Behind - 129 ACKNOWLEDGEMENTS

Yael Sagi-Hagag | VP HR | SAP Israel Ilan Levene | JDC | Israel

Zohar Schwartz | Chif Procurement Officer Sano| Prof Miki Malul | Ben Gurion University | Israel

Yair Seroussi | former Chairman | Bank Hapoalim Itai Nixon | Ministry of Strategic Affairs and Public Diplomacy | Israel Danielle Shany | HR Director | Unilever Israel Ali Schmidt-Fellner | Mastercard | USA Sigal Shelach | Director General | JDC Israel Tomás Sercovich | Business in the Community | Ireland Ilan Shimoni | Founder & CEO | Tavas Sigal Shelach | JDC | Israel Alona Shoam | VP HR | Strauss Group Noa Tron | Israel Diversity Forum Smadar Sivan | Head of Learning & Development Centre | Bank Hapoalim We also want to thank the 2019 summer interns at Maala Gili Swary | Venture Development Manager | Hackaveret from the USA who helped with research and transcribing (The Hive) - Israel's social innovation Hub of interviews: Debbie Sostman and Michael Hendricks.

Prof. Manuel Trajtenberg | Professor of Economics | Tel Aviv This book is part of a collaboration between Maala and University Israel's Ministry of Strategic Affairs and Public Diplomacy on Rachel Yarcony – Goldstein | VP Marketing & Corporate connecting the Israeli CSR community with the global one. Communication | Teva Pharmaceuticals Finally, we would like to thank all those who contributed with their knowledge and resources, as well as the wider Galit Zucker | Chief People Officer (HR) SodaStream| network of Maala, without whose continuing support and We are especially grateful to members of the International commitment, there would have been no story to tell. Advisory Panel who responded to an earlier draft of David Grayson, Tami Leffler, Momo Mahadav, Elisha Leaving No One Behind: Silberklang.

Dr. Talia Aharoni| Maala founder | Israel

Daniel Barker | Mastercard | USA

Steven Berkenfeld |formerly Barclays Capital | USA

Amanda Bowman | Emerging World | UK

Chris Coulter | GlobeScan | Canada

Ulrika Hasselgren | Danske Bank | Denmark

Boaz Israeli | Israel

130 - Leaving No One Behind Leaving No One Behind - 131 ABOUT THE AUTHORS

David Grayson Momo Mahadav, CEO, Maala

David is Emeritus Professor of Corporate Responsibility at Momo is a key player in the Israeli CSR arena and has Cranfield School of Management. From 2007-17, he was a proven track record of leading value and behavioral the founder-director of the Doughty Centre and Professor based change processes within the business, public and of Corporate Responsibility at Cranfield. He was a visiting social spheres. He joined Maala in 2006, bringing with him Senior Fellow at the CSR Initiative of Harvard’s Kennedy extensive experience working in public policy frameworks School of Government: 2006-10. and environmental and community work. He was appointed CEO in 2009. David has chaired or served on various charity, social enterprise and public sector boards. He currently chairs Following a disruptive change in the field, Momo defined the national charity Carers UK and the international charity: Maala's new business strategy, including doubling the The Institute of Business Ethics. He is part of the Circle number of companies participating in the Maala CSR of Advisers for Business Fights Poverty. He is a former Index, expanded media exposure and cooperation Managing-Director of the Responsible Business Coalition: with numerous partners. In 2016, the annual Maala Business in the Community and has worked with many CSR Conference was restructured into an innovative international coalitions, institutions and companies around international format, featuring Israel's creative approaches the world. to corporate citizenship alongside cutting-edge knowledge presented by global thought leaders. The Guardian newspaper has named David as one of ten top global tweeters on sustainable leadership alongside Al Momo was previously Director of SPNI's (Society for Gore and Apple CEO Tim Cook: @DavidGrayson_ the Protection of Nature in Israel) Tel Aviv Center for David is the author of seven books and has contributed Environmental Action; coordinated city-wide projects to a further 20 on responsible business and sustainability. at the Tel Aviv Municipality; and worked as a community His most recent book is: “All In – The Future of Business organizer. He also serves as a board member in a number Leadership,” co-authored with Chris Coulter and Mark Lee: of non-profit organizations in Israel. Momo holds a master’s www.AllInBook.net degree in Public Policy and a B.A. in Social Work, both from www.DavidGrayson.net Tel Aviv University.

132 - Leaving No One Behind Tami Leffler, Director, Social Innovation and Elisha Silberklang, Project Manager, Maala Information Management, Maala Tami has vast experience in working with large Israeli Elisha joined Maala in 2017, and has since been key to companies on their social innovation strategies. Tami broadening and expanding Maala’s international outreach. joined Maala in 2002 and her expertise includes knowledge He took part in writing a number of reports produced management in the CSR research realm, as well as by Maala in English on various topics in the field of consulting companies on human capital investments, sustainability and responsible business. designs and executes corporate events and collaborative Elisha has helped develop and grow Maala’a connections initiatives. with the global sustainability and CSR community, as well as Tami has led several projects and initiatives at Maala, set up and manage Maala’s website in English – serving as including a most recent extensive Starter-Kit on a Gateway to CSR in Israel. employment of older workers. Her tireless work and rich Previously, Elisha worked as a research assistant in track record have contributed greatly to the development the department of History in the Hebrew University of of the Responsible Business community in Israel. Jerusalem, where he completed his B.A. in History. Tami holds an M.A. in communications from the Hebrew University of Jerusalem, and completed her studies in information and database management at the Technion – Israel Institute of Technology

Leaving No One Behind - 133 FURTHER RESOURCES FOR READERS WISHING TO EXPLORE THE TOPIC OF BUSINESS AND INCLUSIVE GROWTH FURTHER

2019 Global Inclusive Growth Summit co-hosted by the UK All-Party Parliamentary Group on Inclusive Growth: Aspen Institute and the Mastercard Centre for Inclusive https://www.inclusivegrowth.co.uk/ Growth – includes 18 videos on YouTube of main sessions of summit: World Business Council for Sustainable Development: Future http://www.globalinclusivegrowthsummit.com/ of Work Project: https://futureofwork.wbcsd.org/ Business for Social Responsibility (BSR) Inclusive Economy Programme World Economic Forum GrowInclusive: This project is part https://www.bsr.org/en/expertise/inclusive-economy of the World Economic Forum’s Shaping the Future of the New Economy and Society Platform: Global Impact Sourcing Coalition https://www.weforum.org/projects/inclusive-growth-and- A forum of the world's leading companies committed development to incorporate and scale impact sourcing as a business strategy—ending poverty through procurement. https://gisc.bsr.org/ Reducing Poverty through Employment Toolkit from BSR and GISC: https://www.bsr.org/reports/Reducing_Poverty_through_Employment. pdf JP Morgan Chase Policy Centre to develop and advance sustainable, evidence-based policy solutions to drive inclusive economic growth in the U.S. and around the world: https://www.jpmorganchase.com/corporate/Corporate- Responsibility/policycenter.htm Mastercard Centre for Inclusive Growth: https://www.mastercardcenter.org Morgan Stanley’s Institute for Sustainable Investing, “Inclusive Growth Drivers: The Anatomy of a Corporation,” explores four key areas where a corporation’s activities can impact inclusive growth: Human Resources, Products and Services, Operations Management, Firm Management and Governance: https://www.morganstanley.com/ideas/4-ways-to- incorporate-inclusive-growth OECD Business for Inclusive Growth Platform: https://www.oecd.org/inclusive-growth/ businessforinclusivegrowth/ RSA Inclusive Growth Commission was an independent, impactful inquiry designed to understand and identify practical ways to make local economies across the UK more economically inclusive and prosperous: https://www.thersa.org/action-and-research/rsa-projects/ public-services-and-communities-folder/inclusive-growth- commission

134 - Leaving No One Behind Leaving No One Behind - 135 NOTES

1 . Doron, D., Israel's Cottage-Cheese Rebellio n, The Wall Street says Oxfam,” The Guardian, Jan 21st 2019 Journal, August 3, 2011 https://www.theguardian.com/business/2019/jan/21/world-26- richest-people-own-as-much-as-poorest-50-per-cent-oxfam- 2. Authors’ interview, June 2019 report

3. Anshel Pfeffer p .320 BIBI 14. Edelman Trust Barometer, January 20th 2019: https://www. edelman.com/trust-barometer 4. Economist May 18 2017: Startup nation or left-behind nation? Israel’s economy is a study in contrasts 15. Cramer A., The Business Roundtable Aims High, But Misses, https://www.economist.com/special-report/2017/05/18/israels- August 22, 2019 https://www.linkedin.com/pulse/business- economy-is-a-study-in-contrasts roundtable-aims-high-misses-aron-cramer/

5. Authors’ interview June 2019 16. http://www.oecd.org/inclusive-growth/#introduction

6. The State of Israel has a population of approximately 9,021,000 17. The Framework for Policy Action on Inclusive Growth, OECD, May inhabitants as of May 2019: Israel Central Bureau of Statistics 2018

7. Verbatim quote from MA’ALA Round-Table with CEOs of member 18. https://www.morganstanley.com/ideas/inclusive-growth-as-the- companies, Autumn 2011, conducted under the Chatham House new-economic-engine-podcast Rule - unpublished 19. https://www.morganstanley.com/content/dam/msdotcom/ 8. Grayson D and Hodges A, Everybody’s Business: Managing Risks ideas/eiu-inclusive-growth-infographic/1799419_EIU_MS_ and Opportunities in Today’s Global Society, The Financial Times InclusiveGrowth_20170518_Final.pdf and Dorling Kindersley (2001) 20. Deloitte, “Creating a Measurable Impact: Deloitte Inclusive 9. Ibid Growth Survey” September 2018

10. For clarification for non-Israeli readers, the Joint (formally: The 21. Business Round-Table Redefines the Purpose of a Corporation American Jewish Joint Distribution Committee or JDC) is a Jewish to Promote ‘An Economy That Serves All Americans’ - AUG 19, relief agency based in New York. JDC Israel is a unique organisation 2019 - https://www.businessroundtable.org/business-roundtable- which has played a pivotal role in Israel even before the state of redefines-the-purpose-of-a-corporation-to-promote-an- Israel was founded. The Joint channels donations from around the economy-that-serves-all-americans world to help fund economic and social development, inter alia, in Israel. JDC-Israel spends around $120million p.a. on around 200 22. https://www.mastercardcentre.org/ individual programmemes. JDC Israel works in close co-ordination with the Israeli government and municipalities. Some have 23. Reimagining growth that delivers for everyone, MICHAEL described the Joint as Israel’s social R&D arm, with projects and FROMAN, VICE CHAIRMAN AND PRESIDENT STRATEGIC GROWTH, programmemes piloted with Joint sponsorship and if successfully, MASTERCARD 09/19/2019, Politico http://www.politico.com/sponsor- taken up as on-going programmemes by the public sector. Over the content/2019/09/19/reimagining-growth-that-delivers-for-everyone years this has involved also working with numerous NGOs and to a lesser extent businesses, which has further enhanced the Joint’s 24. https://www.morganstanley.com/ideas/4-ways-to-incorporate- institutional memory and prodigious networks. The JDc Israel’s latest inclusive-growth strategy launched in 2019 places a greater emphasis on Inclusive Growth. 25. Weiss, Avi. pg. 18 Retrieved from http://taubcenter.org.il/wp- content/files_mf/pon201950.pdf 11. Now for the Long Term. The Report of the. Oxford Martin Commission for Future Generations, Oxford University Martin School, 26. https://stats.oecd.org/Index.aspx?QueryId=72628 October 2013 27. Messika E., The Israeli Ecosystem: View of a European VC, 12. ibid Medium, Jan 29 2018

13. Elliott L., “World's 26 richest people own as much as poorest 50%, 28. Source: https://www.oneragtime.com/israels-innovation-secret/

136 - Leaving No One Behind Jan 31st 2018 47. https://www.forbes.com/sites/davidyin/2017/01/09/what-makes- israels-innovation-ecosystem-so-successful/ 29. ibid 49. Ibid. 30. BoI (2016d), “Fiscal Survey and Selected Research Analyses”, Bank of Israel, Research Department, 49. Ibid. www.boi.org.il/en/NewsAndPublications/RegularPublications/ Research%20Department%20Publications/ 50. Levin, B., Not just fish: High-tech entrepreneurs are giving the State of Israel fishing rods to help close social gaps, The Jerusalem 31. National Bureau of statistics 2018 Post, June 14th 2018

32. Haretz 28/02/2017 https://www.haaretz.com/israel-news/ 51. https://www.morganstanley.com/ideas/4-ways-to-incorporate- business/older-workers-boosting-workforce-economy-1.5443299 inclusive-growth (Oct 2017)

33. The 65+ population in Israel: Statistical abstract 2018 52. https://www.oecd.org/inclusive-growth/Business_for_IG.pdf https://brookdale.jdc.org.il/wp-content/uploads/2018/02/MJB-Facts_ and_Figures_Elderly-65_in_Israel-2018_English.pdf 53. Business pledging against inequalities at the G7 summit 2019 https://www.oecd.org/inclusive-growth/businessforinclusivegrowth/ 34. World Economic Forum, Inclusive Growth Report 2018 54. https://www.oecd.org/inclusive-growth/ 35. Trajtenburg, pg. 4. Retrieved from https://www.bjpa.org/content/ businessforinclusivegrowth/ upload/bjpa/c__c/Trajtenberg-Report-Summary-English.pdf 55. The OECD Framework for Policy Action on Inclusive Growth – 36. Trajtenburg, pg. 4. Retrieved from https://www.bjpa.org/content/ MAY 2018 – section 2.2 upload/bjpa/c__c/Trajtenberg-Report-Summary-English.pdf 56. https://thepartneringinitiative.org 37. https://embassies.gov.il/san-francisco/AboutIsrael/People/Pages/ PEOPLE-The%20People%20of%20Israel.aspx 57. Samuel Neaman’s initiative is an independent multi-disciplinary national policy research institute. The activity of the institute is 38. https://www.forbes.com/sites/davidyin/2017/01/09/what-makes- focused on issues in science and technology, education, economy israels-innovation-ecosystem-so-successful/ and industry, physical infrastructure and social development which determine Israel’s national resilience. https://www.neaman.org.il/EN/ 39. Yin, D. (2017, January 10). What Makes Israel's Innovation About Ecosystem So Successful. Retrieved from https://www.forbes. com/sites/davidyin/2017/01/09/what-makes-israels-innovation- 58. "Inclusive Growth Drivers: an Anatomy of a Corporation". Morgan ecosystem-so-successful/ Stanley Institute for Sustainable Investing and BSR, 2017, p. 4. https:// www.morganstanley.com/content/dam/msdotcom/ideas/anatomy- 40. Senor D., and Singer S., Start-Up Nation: The Story of Israel’s of-a-corp/1923429-Anatomy_Corp_White_Paper_FINAL.pdf Economic Miracle (2009) p. 53-54) 59. The Inclusive Employer, Business in the Community Ireland, Feb 41. https://embassies.gov.il/san-francisco/AboutIsrael/People/Pages/ 28th 2019, https://www.bitc.ie/newsroom/news/new-business- PEOPLE-The%20People%20of%20Israel.aspx talent-blueprint-promotes-social-inclusion/

42. Israel’s Innovation Secret: OneRagTime, Jan 31st 2018: https:// 60. MA’ALA CEO Roundtables on responding to the social protests, www.oneragtime.com/israels-innovation-secret/ Autumn 2011, conducted under Chatham House Rule, verbatim quotes. Unpublished. 43. Ibid. 61. Aloni, T. and Krill, Z. 2016 ), Intergenerational Mobility of Earnings 44. Quoted in Start-Up Nation page 248, quoted in Collins and in Israel international comparison and comparison of population Porras, Built to Last (1994) groups (electronic version), Ministry of Finance. [from the JDC strategic planning presentation] 45. Authors’ interview, Feb 21st 2019 62. OECD (2017). Income distribution database. [from the JDC 46. https://www.quora.com/What-does-separated-by-one-degree- strategic planning presentation] mean

Leaving No One Behind - 137 63. https://www.weforum.org/agenda/2019/07/happy-employees- 76. Harel Insurance Investments and Financial Services website and-their-impact-on-firm-performance/ (Hebrew): https://www.harel-group.co.il/about/CSR/Pages/stuff-and- work-environment.aspx 64. Assuta Medical Centres website: https://www.assuta.co.il/en/ about_assuta/ 77. Call Yachol, the first company of its kind in the world, specializes in setting up outsourced call centers staffed mainly by people with 65. "Manual for Career Ladders" (rough translation). JDC Israel – disabilities. The company was founded in February 2008 by Dr. Gil Tevet. 2015, p. 7. (Hebrew source) http://www2.jdc.org.il/sites/default/ Winch and Efrat Segev Winch whose vision was to revolutionize the files/paths1.pdf employment of people with disabilities in Israel

66. material is derived from the HR session at the 2018 Maala 78. Call-Yachol website: https://callyachol.co.il/eng/content-1 conference, by Iris Mor from Assuta 79. Authors’ interview Feb 17th 2019 67. The origin of this particular savings plan is in the education system, where teachers would save money for six years in order to 80. Co-Impact website: https://www.co-impact.org.il/collective- take a sabbatical in the seventh year and acquire additional training impact-partners or education. It has developed since and is offered in all sectors today. While the fund still remains untouchable for six years, there is 81. Co-Impact website: https://www.co-impact.org.il/collective- no longer a requirement to take a sabbatical and use the savings in impact the seventh year, essentially turning the original training/education fund (in Hebrew: Keren Hishtalmut) into a beneficial savings plan.] 82. Tnuva Website, about: http://en.tnuva.co.il/about/ The training fund is important for preserving the employee's capabilities. Therefore, it would make sense that at least the 83. Osem website: https://www.osem.co.il/en/about-us/history- employer's portion goes for real training in coordination with the osem/ employee 84. https://www.iataskforce.org/entities/view/966) 68. Paamonim is a non-profit organization operating in Israel aimed at assisting families in financial difficulty so that they may regain their 85. The statistics are based on Osem-Nestle's submission to the economic independence 2017 Israeli Diversity Award and an interview conducted with Osem representatives Henn Rivner and Shiri Chen in 2019 69. Weissberg, Hila. "Rate of Israelis with Private Insurance Rose by 30% in Seven Years" (rough translation), Globes Financial Newspaper. 86. SodaStream website: https://corp.sodastream.com/about/ February 3rd, 2019. (Hebrew) https://www.globes.co.il/news/article. aspx?did=1001271654 87. Picture of the emblem from presentation at the Maala international conference 2018 70. This case-study was derived from the HR session at the 2018 Ma’ala conference, by Anat Mori from Leumi 88. Authors' interview with SodaStream representatives, February 2019. (p. 6 in transcript) 71. Barlev, Lital. (et. all), (eds.), People with disabilities in Israel 2017, Commission for Equal Right of Persons with Disabilities and the 89. SodaStream CEO Birnbaum to step down and become sparkling Myers-JDC-Brookdale Institute, 2017. p. 2 https://brookdale.jdc.org.il/ water firm’s chairman Times of Israel, July 15th 2019 wp-content/uploads/2017/12/People_with_disabilities_2017_eng.pdf 90. Material based on presentation at Maala forum on September 72. Maala ESG Index, 2018 5th 2019 + Diversity Award submission 2018

73. Barlev (et. all), People with disabilities in Israel 2017. P. 4. 91. Talk that Chen Michaeli, VP HR at Dan Hotels, gave in the Maala Forum on September 5th 2019 74. Israeli Arab Population: Facts and Figures, Myers-JDC Brookdale Institute, 2019. https://brookdale.jdc.org.il/wp-content/ 92. Malach and Cahaner. "Population and Demographics", ", uploads/2019/05/Israels-Arab-Population-Facts-and-Figures-ENG. Statistical Report on Ultra-Orthodox Society in Israel 2018. https:// pdf en.idi.org.il/haredi/2018/?chapter=26180

75. Malach, Gilad. and Cahaner, Lee. "Population and Demographics", 93. https://www.timesofisrael.com/15000-tech-worker-shortfall- Statistical Report on Ultra-Orthodox Society in Israel 2018, The pushing-firms-to-seek-talent-offshore/ Israel Democracy Institute, March 14, 2019. https://en.idi.org.il/ haredi/2018/?chapter=26183 94. Ravet H., Western Digital Takes Leap of Faith with Israeli Jewish

138 - Leaving No One Behind Ultra-Orthodox Female Coders, CTECH, 07-11-2018 www.calcalistech. com/ctech/articles/0,7340,L-3749313,00.html accessed 14 Sept 2019 113. Taub Centre for Social Policy Studies in Israel. http://taubcentre. 95. https://www.kamatech.org.il/english/ accessed 14th Sept 2019 org.il/category/health/

96. ibid 114. Ibid.

97. Ravet H., Western Digital Takes Leap of Faith with Israeli Jewish 115. "The Story of Clalit Health Services", Clalit website: http://www. Ultra-Orthodox Female Coders, CTECH, 07.11.18 https://www. clalit-global.co.il/en/_the_story_of_clalit_health_services.html calcalistech.com/ctech/articles/0,7340,L-3749313,00.html 116. For more on Tyto, visit: https://www.youtube.com/channel/ 98. Profile based on an interview at Western Digital Israel with Ronit UCjOhdsK4IYbpjISPriMICHg Ronen-Karpol, Head of HR and Deputy Site Manager Israel, June 18th 2019 117. Unilever global website: https://www.unilever.com/about/who- we-are/about-Unilever/ 99. Teva global website: https://www.tevapharm.com/about/profile/ who_we_are/ 118. Authors’ interview December 2nd 2018

100. Authors’ interview November 1st 2019 119. Nick Dalton, HR Executive Vice-President, Unilever speaking to the Corporate Research Forum, London, Sept 10th 2019 101. Case study derived from diversity award submission 2018 (translated from Hebrew original) 120. Poalim IBI's website: https://www.poalimibi.com/about/

102. Gevasol website: https://www.gevasol.com/Products 121. Fundit's website: https://www.fundit.co.il/page/1/about-us

103. OECD, Working Better with Age, Oct 2019 - DOI: https://doi. 122. Strauss Group Sustainability Report 2018, p. 44. org/10.1787/c4d4f66a-en https://www.strauss-group.com/wp-content/blogs.dir/3/files/sites/3/ strauss-2018_0205-low-0505.pdf 104. Peters T., Thriving on Chaos, Pan Books, 1988 123. Elbit website: https://elbitsystems.com/about-us-introduction/ 105. The Maala Basic Index is open to any business with an annual turnover below 320million NIS ($91million) 124. "Protecting Lives Through Innovation", Elbit Systems Sustainability Report 2015-16, p. 28. https://elbitsystems.com/media/Elbit- 106. Ministry of Economy & industry: Small and Medium Business Sustainability_2017_I.pdf Agency - Financing SMEs and Entrepreneurs 2018 – An OECD Scoreboard https://www.sba.org.il/hb/PolicyAndInformation/ 125. Katapult Future Fest, May 2019 https://www.katapult.tech/ Researches/Documents/Israel_Country_Profile_2018_July. speakers/cecile-blilious pdf#targetText=Small%20and%20medium%20enterprises%20 (SMEs,up%20to%20100%20workers%20each. 126. https://impact1st.com/

107. Sano case study is based on an interview with Zohar Schwartz, 127. http://www.justmeans.com/blogs/from-startup-nation-to-b- chief procurement officer at Sano corp-nation-israel-joins-the-movement - accessed Sept 15th 2019

108. Tavas case study is based on an interview with Ilan Shimoni, 128. Founded in 2015, B Corp Israel supports high-impact social CEO of Tavas entrepreneurs solving Israel and the world’s greatest development challenges. They aim to bring global best practices in impact 109. Leumi Way, Vision, Core Values and Ethics https://english.leumi. investing to Israeli social businesses in order to improve impact co.il/static-files/10/LeumiEnglish/Leumi_Review/November_2014.pdf measurement and reporting, grow access to capital, and build - accessed Sept 16th 2019 community. B-Corp Israel is a team of volunteer leaders bringing the methodology of B Lab – the global leader in the rating and 110. https://en.jasmine.org.il/who-we-are/ certification of impact businesses, and the gold standard for impact investors around the world – to Israel’s social entrepreneurs. 111. https://en.jasmine.org.il/who-we-are/ accessessed September 8th 2019 129. Based on author interview with Cecile Blilious, June 18th 2019 supplemented with material from https://thestudentinvestor.home. 112. https://www.netafim.com accessed Sept 12th 2019 blog/2019/08/01/post-4-impact-tech-nation-why-israel-is-a-blue- ocean-part-1/ Accessed Sept 15th 2019

Leaving No One Behind - 139 150. "The Exponential Power of Collaboration for STEM Success". 130. Dwek D., Impact Tech Nation – Why Israel is a “Blue Ocean” The Intel Blog. 29 March 2017. https://blogs.intel.com/csr/2017/03/the- Student Investor, Aug 1st 2019 accessed Sept 15th 2019 exponential-power-of-collaboration/#gs.z6nslk

131. ibid 151. https://sheatufim.org.il/en/about/ accessed Sept 11th 2019

132. https://thestudentinvestor.home.blog/2019/08/01/post-4- 152. https://www.5p2.org.il/partners-lobby/ impact-tech-nation-why-israel-is-a-blue-ocean-part-1 153. 5x2 – expanding the Circle of Excellence. Sheatufim website. 133. GlobeScan's evidence-based approach generally relies on https://sheatufim.org.il/en/subject/collective-impact/5x2-expanding- polling amongst the general public and targeted stakeholders circle-excellence/ according to the scope of their clients project. GlobeScan is a registered B-Corp and was recognised as a ‘Best For The World’ 154. "The Exponential Power of Collaboration for STEM Success". honoree in recognition of the relationship it has with employees. Intel Blog. 29 March 2017. https://blogs.intel.com/csr/2017/03/the- It ranked in the top 10% of all B Corps in the worker impact area in exponential-power-of-collaboration/#gs.z6nslk 2019.) 155. Bowman A., Corporate Volunteering for the 2020’s 134. Maala-Globescan 2014 PRESS reset for a corporate volunteering programme fit for today’s and tomorrow’s employees’ and society’s expectation, Emerging 135. Maala-Globescan 2019 World, Oct 2019: https://www.emergingworld.com/blog/corporate- volunteering-for-the-2020s/ 136. Strauss 2018 sustainability report 156. Tovanot B'Hinuch English website: https://tovanotb.org/about/ 137. ibid 157. Based on authors’ interview February 2019 and evaluations of 138. Derived from an interview with Yael Dromi, head of Bank Aharai and of Bank Leumi involvement Hapoalim's stakeholder division June 13th 2019. 158. Bank Leumi website: https://english.leumi.co.il/Articles/20642/ 139. ibid 159. Ibid. 140. "Social, Environmental and Economic Responsibility Report 2018", Bank Hapoalim, p. 11. 160. Aharai website – video about the programme: http:// partners.aharai.org.il/en/homepage-en/#from-the-press; also 141. ICL website: http://www.icl-group.com/about-icl/icls-history/ available on YouTube: https://www.youtube.com/watch?time_ continue=398&v=QYMBRRSBWuU 142. http://www.icl-group.com/about-icl/vision-strategy/ 161. Based on an interview with Yael Sagi Hagag, VP HR SAP Israel, 143. ICL is a global leader in providing phosphate-based solutions to February 17th 2019 industrial, food, and agriculture end-markets. http://www.icl-group. com/about-icl/vision-strategy/ 162. SAP Israel is based in Ra'anana's high tech industrial park which is home to many leading global companies and local start up 144. ICL website: http://www.icl-group.com/about-icl/icls-history/ companies.

145. http://icl-group-sustainability.com/reports/controlled-release- 163. What is Tmura: http://tmura.org/faq/ accessed Sept 12th 2019 fertilizers/ 164. The Start-Up Nation at 70: Dan Senor at JFN 2018, Jewish 146. ICL Sustainability Report 2018: http://icl-group-sustainability. Funders Network May 29th 2018, https://www.jfunders.org/dan_ com/reports/community-engagement-in-israel/ senor_at_jfn_2018

147. ICL Sustainability Report 2018: http://icl-group-sustainability.com/ reports/thinking-doing/

148. Ibid.

149. Ibid.

140 - Leaving No One Behind Leaving No One Behind - 141 INDEX

A.C.T.I.O.N 43 Collective Impact 58 Adiv, Micky 38, 74 Co-impact 58 Agenda for Action: checklist 120-123 Cost of living 6, 34, 50, 71 Aharai 112-115 Cottage-cheese Protests – see Social Protests Al Fanar 71 Cramer, Aron 23 All In 41 Dan Hotels 63, 64 Annan, Kofi 35 Danone 40 Arab Israelis 31, 58-64 Digital literacy 35 Aroma Coffee 56, 57 Diversity & Inclusion 40 Assuta Medical Centres 48, 49 Dov Lautman Business Diversity Award 18, 21, 62, 67 Automation 42 Dromi, Yael 102, 103 Bank Leumi 54 Drucker, Peter 16 -Aharai 112-115 Economist 13 -Leumi Way 79 Edelman Trust Barometer 23 -Suppliers & Maala SME Index 78 Education & Inclusive Growth 24, 25 Bedouin Israelis 59, 62 Education-Business Partnerships 112 B-Corp 95 Eckstein Committee 14, 20, 43 BDO Israel 65, 66 Elbit 93, 94 Birnbaum, Daniel: Sodastream 61, 63 Elder poverty 33 Blilious, Cecile 94, 95 ELEM – youth NGO 92 Business for Inclusive Growth 40, 41 Employee Welfare programmes 53 Business in the Community Ireland 46 Employee well-being 17 Business Round-Table 26 Ethiopian immigrants 14, 113, 114 BSR: Business for Social Responsibility 12, 23 Executive compensation 41, 101 Call Yachol 55, 56 Financial Times 6 Career progression 49 Fourth Industrial Revolution 25 Caregivers Israel 69 Froman, Michael 26 Carers see Working Carers FundIt 87 Central Bottling Company 52, 53 Gabriel, Anat 86 Chutzpah 38 G.A.F.A. Talent War 66 Clalit 84 Gevasol 69, 70 Collaboration 42 Gilets Jaunes 12 -Mindset 42 GlobeScan-Maala 70, 71, 98 -M.U.S.T-have skills 42 Golan, Asnat 100

142 - Leaving No One Behind Good Practice Continuum 126 Jewish Funders Network: JFN 127 Hack-a-thons 115 Joining the dots 126 Hapoalim 74, 91 Joint: Joint Distribution Committee 48, 69 - Bank closures 103 -new strategy 2019 43 -Digital inclusion 91, 92 KamaTech 66, 67 - Financial Growth Centre 91, 92 Kav Mashve 61 -Stakeholders Division 102, 103 Kiryat Gat 105 Haredim: see Ultra Orthodox Leaders Quest 16 Harel Insurance Co 55, 56 Ledany, Rachel 69 Headstart 87 Levin, Ben 39 High-Tech Association: HR Forum 67 Levin, Lindsay 16 Hyper global inequalities 6, 38 Leaving No-one behind 17 IBI Investment house 87-89 Living Wage 40, 47, 71 ICL 106-108 Longer working lives: see Older Workers - Thinking/doing 106-108 Maala IDF: Israeli Defence Force 37 - Agenda for Action 120-123 Impact First Investments 94-97 - Index 47 Impact Investing 94-97 - revised criteria 2020 128 Inclusive Growth 23, 24 - SME Index 74, 75 -definition 23, 24 Manufacturers’ Association 42 In-company social workers 53 -Economic & Social Forum 21 Incubators 14, 45 Mash-ups 71 Intel 104-106 Mastercard Centre for Inclusive Growth 26 -5x2 109, 110 Mentoring 114 - Innovating Together 104 Minimum wage 7, 32, 47, 48, 50, 75, 77 -Place-making 105 Morgan Stanley 24, 27, 40, 46 -Total Economic Impact 44 National Bureau of Statistics 113 In-work Poverty 32, 47 Netafim 84 IPO 45, 87, 95 Now for Long-Term 22 -share options to charity at IPO 118 Occupy movement 12, 20 Israel Diversity Forum 20, 123 OECD 23 Israel Electricity Company 80, 81 -Business & Inclusive Growth Platform 40, 41 Israel Innovation Authority 68, 89 - Framework for Policy Action 26 Israelis with disabilities 55 Older Workers 33, 69 Jasmine - NGO 79 Olim: immigrants from former USSR 13, 30 JDC: see Joint Osem-Nestle 13, 60, 61

Leaving No One Behind - 143 Oxford Martin School 22 Tavas 77 Pa’amonim 51, 93 Tax 41 Palestinians 62 Tech-for-Good 14 Partnerships42 Technicon 69 Pitango 95 Tel Aviv Stock Exchange Index 47, 124 Pre-recruitment training 35, 59, 68 Tent City: see Social Protests 2011 Productivity 23, 29, 31, 47 Teva 68, 69, 90, 91 Prompt payment: Leumi 79 -access to medicines 90, 91 Propper, Dan 13 -working carers 68, 69 PwC Golden Index 33 The Partnering Initiative 42 R&D Centres 28 Timeline for Israeli Business & Inclusion 20, 21 Renewing Capitalism 26 Tmura 118 Reskilling 54 Tnuva 58 Rivlin, Reuben 36 Tovanot B’Hinuch 111 Sano 75-77 Trajtenberg, Manuel 34 Samuel Neaman Institute 44 Trajtenberg Commission 34 SAP 115, 116 Tribes of Israel Speech 36 -Apps for people with disabilities 115, 116 Trust 23, 40, 70, 100 Senor, Dan 14, 37, 38, 127 Tsofen 58 Seroussi, Yair 111 Tuchman, Barbara 38 Sheatufim 110 Tyto 85 Singer, Saul 14, 37, 38, 127 Ultra-Orthodox 31, 65, 68 Shopo: see Unilever Israel Unemployment 25, 28 Social Protests 2011 12, 34, 46 Unilever Israel 85-87 Sodastream 61-63 -e-commerce: Shopo 86-87 Start-up Nation 14, 37, 127 ValuAble500 71 Strauss 49-52 War for Talent 66 -food reformulation 90 WBCSD Future of Work Initiative 71 -in-work poverty 50-52 WeSource 79, 80 -Kitchen 89, 90 Western Digital 66-68 -Ofra Strauss 12 Winners Take All 22 -Social licence to operate 99 Working Carers 68 -Trust Survey 99-102 Working poor: see In-Work Poverty Suppliers 74-82 World Economic Forum 22, 23, 29 Sustainable Development Goals 17, 90, 128 Youth at Risk 113-117 Talent: see War for 5 x 2 109

144 - Leaving No One Behind Leaving No One Behind - 145